Apps Script must be standalone for it to work with AppSheet?

Hello,

I have read tons on this topic and went through tutorials and posts, but I am stuck.

The official documentation says an Apps Script must be of the type standalone for it to be called by an AppSheet automation. But my standalone Apps Script doesn't have the option "from spreadsheet" for the installable trigger. I 've seen another user here asking the same question in a reply to a tutorial.

Just to make sure I didn't get the documentation wrong, I tried making my script container-bound, and in that case it won't show up in the list of Apps Script that are eligible to be called by an AppSheet automation.
Please help. 
TIA
@LeventK I went through your tutorial, thanks for taking the time to write it.  I am still confused though, because you talk about setting an onChange installable trigger from spreadsheet.

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