My workspace is set to python compatibility 3.11 + a custom arcgis python environment, which works perfectly running in form

Running the same workspace on my Remote engine(on the same machine as form) it is using python v3.12 inside the FME install directory, even though I have changed the python variables to point to the correct version and python path using fme APPLY_SETTINGS

The settings look correct using fme LIST_SETTINGS + I have restarted all FME services

How do I set the remote engine to use the correct python environment?

Remote engine - FME 2024.2 on windows, on prem
FME Flow 2024.2 - Cloud/hosted