Im using a t5 fur workbench, but there doesn't seem to be an option to make Fur sections, even though I have acquired fur armor from certain quests, Am I missing something? or is fur armor only obtainable through quests

You need a fur workbench, and you need a wool workbench to make that one, to make the fur armor
You can get fur from some animals , but have to go pretty far(like 200km) from relica for it i think, some dungeons have enemies that drop fur if you butcher them.
Still i think you are better with just brass armor(you can craft tier 5 brass with just copper and zinc), then trying to get diamond and then jade armor, or just jade armor, but it depends what weapons do you use(strength is kinda a bad stat so i recommend you not use strength armor/weapons, if you want to play the "meta" then just go all resilience things). Join the discord for advice