@tejastra
We replicate the issue at our end, got the same error you were getting while connecting cloud SQL database with qloapps :-

Storage engine MyISAM is disabled (Table creation is disallowed).

Here is the workaround of your problem:-

Open the file located at :- PATH_TO_QLOAPPS_FILES/classes/db/DbMySQLi.php
look for this funtion :-
checkCreatePrivilege($server, $user, $pwd, $db, $prefix, $engine = null)

under this look for -

if ($engine === null) {
$engine = 'MyISAM';
}

and patch like this:

if ($engine === null) {
$engine = 'InnoDB';
}

save the changes, and then you should be able to successfully connect your Cloud SQL database with Qloapps.

Do let us know how it goes,
Thanks