### Bug description

If I have a project setup like this:

Structure:
```bash
.
|____quarto_files
| |____example.qmd
|_____quarto.yml
```

With `_quarto.yml` having the following configuration:

```yaml
project:
 title: GitHub Issue
 execute-dir: file
 render: 
  - "**/*.qmd"

format: gfm
```

And `example.qmd` being the following:

````bash
---
jupyter: python3
---

```{python}
import os

print(os.getcwd())
print(os.environ['QUARTO_PROJECT_DIR'])
```
````

when I render the project in its root directory with `quarto render`, the output of both print commands from the python cell will be `/home/victor/project`, meaning the code was executed at the projects root directory, not at the file location, as specified by the `execute-dir`.

VERSIONS
Quarto: 1.1.149
OS: Ubuntu 20.04.3 LTS

### Checklist

- [X] Please include a minimal, fully reproducible example in a single .qmd file? Please provide the whole file rather than the snippet you believe is causing the issue.
- [X] Please [format your issue](https://quarto.org/bug-reports.html#formatting-make-githubs-markdown-work-for-us) so it is easier for us to read the bug report.
- [ ] Please document the RStudio IDE version you're running (if applicable), by providing the value displayed in the "About RStudio" main menu dialog?
- [X] Please document the operating system you're running. If on Linux, please provide the specific distribution.
jjallaire
2022-09-09T01:35:31Z
Victor-Botelho
bug
v1.2
closed
`project.execute-dir: file` isn't respected
https://github.com/quarto-dev/quarto-cli/issues/2376