I was able to go to the settings -> tools tab -> and then define a "new" tool with the associated heaters as "1" and associated drives "1".
This finally made the "tool" assigned to heater 1 instead of heater 0. What code am i messed up on?
; Heaters
M305 P0 T100000 B4138 C0 R1000 ; Set thermistor + ADC parameters for heater 0.
M143 H0 S120 ; Set temperature limit for heater 0 to 120C
M305 P1 T100000 B4138 C0 R1000 ; Set thermistor + ADC parameters for heater 1.
M143 H1 S280 ; Set temperature limit for heater 1 to 280C
; Fans
M106 P0 S1 I0 F500 H-1 ; Set fan 0 value, PWM signal inversion and frequency. Thermostatic control is turned off
; Tools
M563 P1 D H ; Define tool 1
G10 P1 X0 Y0 Z0 ; Set tool 1 axis offsets
G10 P1 R0 S0 ; Set initial tool 1 active and standby temperatures to 0C
; Automatic saving after power loss is not enabled
; Custom settings are not configured
; Miscellaneous
T1 ; Select first tool