My seed sprouted but it started to drying out from the top . Not sure what went wrong.
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Avocados are sensitive to root interference. It's possible that at some point a root was damaged and it reacted by restricting top growth. However, it looks like you have a good side bud and there is another longer shoot down lower emerging from the shell, so probably not too late to transfer to soil. When putting into pot take care not to damage the root and leave the multiple shoots to grow into a bushy specimen. That might be to your long term benefit since it will otherwise produce a very tall single trunk tree which might not be suitable for an indoor location.