How do I render the view of an entity reference? I have a custom view which has a field that references another view. How do render the referenced view. I can't see the Render View option.

Below is an attached image for clarity. The top screenshot shows my current setup, while the bottom image shows my expected result.

Also both screenshots are taken from different sites and running the same version of Drupal 8.5.3
Views are config entities, and as such not rendered like content entities. When you reference a config entity, all you get out of the box are two formatters that can render data which all config entities will definitely have: An ID, and a label.

You need a formatter that knows how to render a View display rather than the View entity itself. Core doesn't come with one unfortunately.

You could write your own easily enough, but as already mentioned in the comments there's the Views Reference Field module which will provide the functionality.