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when I launch iTerm it opens in a new window, I want to open it in front of the current app. I know I can set a hotkey (https://apple.stackexchange.com/a/48805/424333) that'll show iTerm on the current screen but I want to also open it like that when I launch the app from Raycast or Spotlight. I couldn't find a way to achieve that.

GorvGoyl
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There is a preference for this, in Preferences → Appearance, called "Exclude from Dock and ⌘-Tab Application Switcher". This will open in the "current app" in the sense that it will not have its own dock icon, and will be present in fullscreen apps as well without switching spaces.

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If by "popup" you mean the hotkey / HUD windows, then you need to go to the Profiles tab and choose the "Hotkey Window" and set it as the default profile.

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Glyph
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