am i right to think undergrad prestige doesn't really matter if i plan on going to grad?

Title. For undergrad I've got basically guaranteed admission and tuition+won scholarship+good chances of a full ride with institutional grants at a TINY and I mean TINY lac in my state. I think I've also got a pretty okay shot at my state's giant flagship+free tuition+pretty likely institutional grants. Maybe a little worse moneywise but either way I'd be graduating debt free.

I know a ton of people at the LAC, including two profs in my academic concentration that are already mentors to me and I get along with great. I'm very confident I can get a great education there. I think the flagship would be a great education too, though. I know the professors in my concentration and I've read their work and was very impressed by it.

Basically my issue is grad school. For undergrad I have like literally a bajillion credits from dual enrollment and would like to do some kind of history+creative writing+econ minors hybrid. Goal is creative writing MFA and then PhD in history, and then academia.

Would a tiny LAC reflect worse on grad applications? and does my undergrad prestige even matter if I end up doing grad school at a prestigious school?