After deploying using the above flow, I learned that the deployment targets the ‘Production’ environment.
Though that is unclear from the above screenshot, either there is a missing step where we can select the ‘reference environment’, or that text should default to ‘production’ if there is only a production and development environment, just to make it clear.
Actually, your production environment is the unique possible destination when you run forest deploy.
(Another command, forest push, will allow you to deploy to a staging if any).
The selection you need to do here is to choose the source environment (the one containing the layout changes). In other words, it is asked if you want to deploy your “Development” changes into your Production environment (referred here as the reference environment).
Is it clearer?
Are you still missing something to use this workflow?