v4 engine version selection logic updated #2419

Job	Run time
units / 🧪 Unit Tests	11m 23s
typecheck / typecheck	4m 45s
e2e / 🧪 CLI v3 tests (ubuntu-latest - npm)	2m 23s
e2e / 🧪 CLI v3 tests (ubuntu-latest - pnpm)	2m 6s
e2e / 🧪 CLI v3 tests (windows-latest - npm)	5m 41s
e2e / 🧪 CLI v3 tests (windows-latest - pnpm)	5m 27s
	31m 45s

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