How to set Applitools environment variable in Next.js?

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I'm trying to set up and run eyes-storybook for my Next.js project but running into this error;

Environment variable APPLITOOLS_API_KEY is not set. To fix:

  1. Register for Applitools developer account at www.applitools.com/devreg
  2. Get API key from menu
  3. Set APPLITOOLS_API_KEY environment variable Mac/Linux: export APPLITOOLS_API_KEY=Your_API_Key_Here Windows: set APPLITOOLS_API_KEY=Your_API_Key_Here

I already have completed steps 1 & 2. I have tried running set APPLITOOLS_API_KEY=Your_API_Key_Here (with my API key of course) within the terminal while in the project directory on VScode but to no avail. I have also tried setting the variable through command prompt and still no luck.

Where am I supposed to run "set APPLITOOLS_API_KEY=Your_API_Key_Here"? I am on windows and the Applitools docs say "set" is the correct command for windows, what am I doing wrong?

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