How To Fix DaVinci Resolve Image Sequence NOT Importing Issue

I've done this exact thing on every single guide, clicking the correct tab, clicking the correct option, and it's still importing as individual images and not a sequence and it's incredibly frustrating :(

Thank you for the thorough explanation! I kept trying to change to sequence from the edit tab, and I couldn't figure it out why it wasn't working! Other tutorials don't specify that you have to be in media tab. Thanks again!