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Hi boss,
good to know that you are in a better place mentally and are looking forward to learn. As long as you are willing to put in the work and are eager to learn, you should progress. If you are not obsessed with brand value, do intern with these non 'tier-1' firms and pick up a job. It is imprudent to intern with firms which hire through day 0 to get a job there now. However, in my 2021 batch, quite a few good candidates made it to AZB after they graduated (and interned in July). I think the chances of that are low while not zero.

At this point, try for firms located in Delhi-NCR and not Bombay. For lower paying firms Bombay is probably unaffordable and unless you have family money or are paid a lot, you should try for Delhi. Since everything is virtual, do as many internships as possible. It is however better to do fewer although longer internships than a string of 3 week internships.

You are behind your Batchmate's on the jobs front undoubtedly. But this does not mean that in a year or two you cannot find yourself in the same place. It is hard but very doable in my opinion.

The hardest part is getting rid of the mental block and the lack of confidence which might hit you on a daily basis. Keep trusting yourself and I hope soon you get a job you like. Since you are recovering (recently recovered) from mental health issues, ensure that you don't spiral into a bad place again. There are so many things which could push you there but you need to prioritise staying in good mental shape over most other things.

Good luck, I am rooting for you.

If you have any further questions, please post them here.