I have created the Issue Security Scheme but am not able to see in the Project Settings the ability to associate it to a project. This is a Team-Managed project.
Unfortunately, issue level security schemes cannot be attached to team managed projects, they are a company managed project feature only.
As a recent update in this feature request (JRACLOUD-76183) shows, Atlassian has also no immediate plans to change this. So, if you need issue level security, setting up company managed projects would be the way to go.
Adding to what @Walter Buggenhout said, while you can't associate Issue Security Schemes to a Team Managed project they have an alternate Issue Security implementation you can explore.
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