The collection variables are getting used, but I want to use the ones set up for a specific environment. Are there known issues with this?
Collection variables are in a different scope than environment variables, in that, collection variables and in a higher scope, and environment variables are in a lower scope.
So when you select a environment to use, the values of those variables will be used over the collection variables, that is, if the variables in both areas have the same name; environment variables trump collection variables. If they are different names, it will use a combination of them.
Refer to the link below for more information.
If this doesn’t solve your issue, please clarify the issue you are experiencing.