Yes! that did it, thanks.
Honestly I didn't even see that you could have multiple Terminals open before, and that you could change the new Terminal option under the settings.
note: this works from terminal in RStudio now (which is what I need). The System terminal, Powershell etc outside of RStudio still won't recognize Quarto since I didn't install it outside of RStudio (which I think is expected, and is fine for my uses at the moment)