Explain the problem.

Pandoc has support for csquotes: true to make use of the csquotes package. The latex package provides the displayquote environment.

---
title: "Your Document"
format:
  pdf:
    keep-tex: true
csquotes: true
---

> This is a block quote.

Running

pandoc -f markdown -t latex test.md

Yields this result

\begin{quote}
This is a block quote.
\end{quote}

I would have expected that pandoc would use csquote's displayquote environment for block quotes.

Pandoc version?
pandoc -v
pandoc 3.1.11.1
Features: +server +lua
Scripting engine: Lua 5.4