Issue with Superbadge - Create contact and hobby reports: Superbadge Reports & Dashboards Specialist

I tried several times in last 2 days but it is really testing my patience now.

Challenge Not yet complete... here's what's wrong:
The 'Lightning Hobbies by Contact' report does not appear to have either the correct report type or (most likely) the correct columns.

I started with different type of reports but never saw Full Name of contact so I have created a Formula field at Contact as Full Name.

Now When I am creating report as custom (as required in challenge) I don't see option to summarise by Account and then Contact.

I have navigated thru:

User-added image
How my report looks like:

Any idea how to summarize it first as Account??