thanks for your suggestions, really learned more about these fuses.
my device (psu) will be inside a retro game console and won't be opened for any reason. expected faults or high currents are really nothing, i am just adding the fuse to protect the rail since other rails have advanced buck regulators with their own over current protection built in. this rail is either 9v or 12v, user selected but once selected it will stay that way.
i didn't want to add more cost that necessary, efuses are nice really but i believe they can be more expensive, like even at lcsc it will be 0.5$. the idea of using lm317 is that it is cheap and reliable for this very simple insignificant function that is needed from the rail.
EDIT:
I have found this tiny device: TPS25961, price at digikey is 0.61$ and at lcsc is 0.5$. it is smaller that the ptc fuse i am using so it can fit without much changing. can do 0.1 to 2 amps so that i can dial it to 400 mA or 300 mA easily. has 106mOhm resistance but at these low currents won't make much voltage drop... around 32mv at 300mA.
it can tolerate my 9v and 12v rails. it has these fancy Undervoltage Protection (UVP) and Undervoltage Lockout (UVLO) which i am not interested in. so i guess i will hook EN pin directly to Vin, and UVLO pin to ground. this way it uses the fixed values which should be ok. it has quirky I_limit setting resistor values as some in table 7.1 must not be used, meaning it does not cover the full range.
taking that into consideration, picking a resistor value of 147k gives me 340 mA current limit which should be ok. 147k was not used in my design, closest thing is 162k which will give current value of 308 mA.