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While in Morph Ball and storing a Shinespark charge, press the jump button (and directional arrow, if desired) to spark in ball form. If no direction is pressed, you should spark upwards.
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So it sounds like you have to build a plot, then immediately go to Nook Miles islands to try to find a villager you like. If you don't pick someone yourself, Tom Nook will randomly pick someone for you.
Per Polygon: "If you have any open housing lots on your island, you can invite any of the villagers you find on Nook Miles island to come stay with you. Each island will have one villager, unless your town is full. If you’re unable to host any new villagers, there won’t be an animal on the island."
