Let’s play a game. The game is “Is the spot on my hand a fungal infection or psoriasis?”

@Amyrakunejo there several pictures and a video in the comments

@itsok Based on my observations; it's a cyst/some kind of bacterial infection. Might even be gout, but the location of the swelling makes gout not likely, even if gout can be present just about anywhere. My advice: Seek a dermatologist.
...
It's swelling like a blister...

@Amyrakunejo for bacterial, there is no pain. There’s not really swelling other than the slight raised edge. There’s not much redness. No fever. No tenderness, pus, numbness, or tingling.
Same for the cyst
Same for gout too. No pain, it’s not warm. No other bodily symptoms other than occasional mild itch

@itsok Bacterial infections can be painful, it's not a must-be symptom, but it's a common one.
The angles of the images make it look more swollen than it probably is. If it's fungal, which I don't see symptoms of, other than peeling skin, I'd use a cold compress for the swelling, and nothing else except for Naproxen for pain mitigation.

@Amyrakunejo my doctor said if it was fungal it probably would’ve responded to the two antifungals we tried first. So now we’re trying a steroid. It might look more swollen because of the angle I have to turn my hand so that the texture can be seen.

Again, there is no pain whatsoever

@itsok Still, I would go see a dermatologist, just in case.