Why am i getting This form is not available online when creating an employee record? the form is a custom Entity(Employee form) and is used on all existing employee records. I did notice i have 1 full license available but the role i am adding is the employee center role and show that license as 15/15 however i ran a report and show 18 users with that role.

I saw this recently. I think the issue is that you don't have any Employee Center licenses left. Normally you would be redirected to a form to request additional licenses- that's the form they're referring to. You can check current users under Setup > Users/Roles > Manage Users.