Custom node installed but not showing in palette or list of installed modules

Yes, that is strange. But it will depend how you have got your dev environment setup and how/where the node has been installed in it.

If the nodes are under ~/.node-red/nodes then node-red will be loading them as 'local' nodes by scanning that directory for any .js and .html file pairs.

When installed properly under ~/.node-red/node_modules/... then Node-RED relies on the package.json to tell it what files it needs to load.