@Pavan Puligandla Thanks for reaching out. You can create the logic app consumption tier with or without ISE as per your business need. This document covers the benefits, resource sharing, limits and pricing.
Yes, ISE is getting retired and for more details you can refer to the Important section here which has different reference links.
Is ISE required to create a logic app or we can create logic apps in either consumption or standard tier from Azure portal?
No ISE is not required to create the logic app but if your requirement is to leverage VNET or other feature (ISE connectors etc.) then you can create ISE with consumption tier, but it is suggested to leverage standard logic app now rather than ISE with consumption tier as ISE is getting retired.
Feel free to get back to me if you have any queries or concerns.