currently this is how my terminal bar looks like, it's showing my full name and the hostname. I'd like to configure it so that this is removed and it only shows the directory, but I don't know how.
Since you're using zsh you can edit your ~/.zshrc file to include this:
See here for details: https://github.com/ohmyzsh/ohmyzsh/issues/5700#issuecomment-311998546
If you go into Terminal and press
Cmd + ,, it will open up the preferences. Click the Profiles tab on the top.
Then click the Window tab.
Then you can set a title and uncheck the "Working directory", "Active Process", and everything else under the Title section.
This will make it look like this: