I am looking for the best workflow for extracting isohypses from the image.
The manual way to do it would be to draw control point curves on the image to define the isohypse.
I can only agree with that. It’s unlikely you’ll be getting anything off of that one.
If you can find an image with higher quality, you could use a tracing plug-in such as Vectorize, or use an external application, such as Inkscape, that has that feature.
-wim