If H1B application not picked at lottery, will this considered as H1B rejection for that year?

I know after the documents scrutinizing if found not eligible for H1b then it is considered as H1B rejection… Need some clarification that what happens if random selection(lottery) not picked up the application?

No, this will not be considered as REJECTION at all. Nothing to worry. You can apply in next year.

you can apply a school which offer cpt on day 1