PHP not updating for individual user

current magento website is running php 7.4 (also my default)
new magento requires php 8.1
I see it listed in dropdown of the user domain - Backend Template settings and I make change to 8.1. (it saves it)
I confirm in my admin panel - Server Web Server settings and I see that user/domain is now under php-8.1 section.

Also my current magento website crashes (which I would expect running the wrong php version)

However my problem is that when I use composer to update magento, it fails because php 7.4 is still being detected.
When I check in the website directory with php -version it shows as php 7.4

It doesn’t seem to update the directory. But it does crash my magento site?!

When I put all the settings back to PHP 7.4. Everything goes back to normal.

Not sure how i can get version updated in that directory so that composer can install update?

Edit the user and set php cli to 8.1, then let magento rebuild/upgrade.

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Thanks so much for the quick reply. That did it. Once I logged out of putty and back in, the change was in effect.
Much Appreciated!!

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