If I search for "google cloud DNS control panel" with Google Images, I'm getting pictures of control panels which are NOT looking like the control panel of your screenshots.
As @Nekit I suspect you're using the DNS zone editor of Google Domains, but your custom name servers are of Google Cloud.
If you don't have any good reason to use custom name servers to begin with, I certainly would switch back to the default name servers. If you still have the CNAME set up correctly, your setup should work. If you've removed the CNAME record, then you should add it again as previously recommended.
Lets come to the basics.
I have a domain and I want to create a certificate, then I am going to use the below right (?)
sudo certbot certonly --manual --manual-auth-hook /etc/letsencrypt/acme-dns-auth.py --preferred-challenges dns --debug-challenges -d *.pywise.co.uk -d pywise.co.uk
In this case, we copy output to custom record in "Default Name Server" tab as CNAME
If Google Cloud DNS comes into picture, do I need to creat certificate for my CloudDNS ?
If we're talking REALLY basic then no, not necessarily.
You're using a very specific method for getting a wildcard certificate using acme-dns. If you don't need a wildcard certificate, but are fine with a certificate for just a few well-defined hostnames, you usually don't need the dns-01 challenge and don't need acme-dns.
When using acme-dnsand you're using Google Domains as nameservers (and do NOT have Google Cloud nameservers configured for your domain) then yes, you should put the custom record as CNAME in your "Default Name Server" editor.
However, if you're using custom name servers, you should add that CNAME record at the DNS zone editor of those custom name servers, which in your case appears to be Google Cloud (which is different from Google Domains).