idTech 2 was specifically built for Quake 1, and only later it was licensed to other developers as well. So it was not an off-the shelf solution id could simply take for building Quake. It was tailored for that game.
I don't think they specifically understood the idea of a "game engine" as the core product at the time. But there are plenty of references if you Google a bit that Quake was designed for modders due to the popularity of DOOM mods - so developer experience was absolutely taken into account from the start.
They had already done licensing deals for the DOOM engine at that point, including the greatest game of all time "Chex Quest."
Yeah, this is why Quake's logic for a lot of game things - monsters, weapons, moving platforms - is written in a byte-code interpreted language (QuakeC). The idea was to separate it from the engine code so modders could easily make new games without needing access to the full engine source.
(And QuakeC was supposed to be simpler as a language than C, which it... is, but at the cost of weird compromises like a single number type (float) which is also used to store bitfields by directly manipulating power of two values. Which works, of course, until your power of 2 is big enough to force the precision to drop below 1...)
Source itself being built from Quake 1…