It's unusual to see a fuse (or eFuse) in the ground side, but it depends on what exactly your application is and whether it's positive or negative ground. It makes sense here only because the current used by the circuit is not part of the load, so I'm assuming this is what you'd like to achieve.
The circuit you showed does NOT work as an eFuse (cutoff power after a threshold is reached). It simply reaches a point where the FET is driven out of its ON state into a linear region where the voltage across the load will drop to maintain the threshold current.
Something like the circuit shown below may work for you.
To get positive feedback when you reach a threshold requires more than simple current sensing. You need some form of latching into the OFF state (to emulate a fuse).
In the circuit below an SCR is used to trigger ON and OFF actions of the M1 FET switch.
Pressing SW1 turns M1 ON.
Pressing SW2 turns M1 OFF.
Overcurrent turns M1 OFF.
If the current through R1 causes Q1 to conduct, the Anode of the SCR is pulled low and eventually it stops conducting when it reaches its holding current. M1 turns off both due to the SCR turning off and the voltage on the gate dropping due to Q1 operation.
This is a strange aspect of this circuit, but maybe it's what you want to achieve. While there is a reasonably well defined overcurrent trip point, the circuit will not allow currents much higher than the set point (M1 comes out of the ON state into the linear region). So you may see overcurrent trigger at say 17A but current be limited to perhaps 18-20A.
This may be of value to stop things in the external circuit from releasing Blue smoke or acoustic Phht noises.
simulate this circuit – Schematic created using CircuitLab
You could of course flip this around and use a P-channel FET to get high side operation. I leave that as an exercise for you.