Gradle v7 requires Java 11 to build Android apps. Android Studio bundled OpenJDK forked version for the build. You can find the version like the below path in JetBrain’s toolbox.
"/Users/kazu/Library/Application Support/JetBrains/Toolbox/apps/AndroidStudio/ch-2/212.5457.46.2112.790598 3/Android Studio Preview.app/Contents/jre/Contents/Home"
So, JAVA_HOME should refer to the path.
Non-toolbox is in the Android Studio’s package.