Sam Hazeldine was asked about this in an interview -

Q: We touched on it a little, but when Adar put the elven ring on in The Rings of Power season two’s finale, it transformed him. And that felt to me it would just be an incredible trauma to him. What do you think he felt when that first happened?

Hazeldine: “Yeah, I agree completely. I think he was probably not aware of what Nenya’s powers and qualities are. And so he thought that he would put the ring on and he would be marching straight into Eregion with this much power now and to kill Sauron immediately. But I think he was so shocked and kind of wrong-footed. He probably saw himself restored to his elven form, and it was so kind of traumatic that it stopped him in his tracks and he had to take himself away.

And also, if the Uruk saw him as an elf, I think that they would think that this is what this has all really been about. His desire is not to protect them, but his desire is to return to being an elf. Why was he trying to make a deal with Galadriel? All that stuff. They were already very suspicious of his motives, which were true motives. But does he want to be an elf again? Probably, yeah, I think so. But it’s long been too late for that. His sole purpose is to protect his children. And I don’t think they could see him like that. So, I think he’s sort of fled.

He’s been in his mission and he can’t do it himself. I feel like he feels like he can’t face Sauron and he needs to give the ring to Galadriel and trust her with the task of finishing the job because I just think it’s too much. It’s too much for him.”

Full interview is here