Hi Paul,
Sorry to hear that you encounter the same issue. I will try to help you with this.
The File location settings mentioned above is: Word > Preferences > Personal Settings > File Locations. There was a setting to set a default file save location in Office for Mac 2011. But it is not available anymore in Office 365 for Mac. For further information
about this, you can refer to this thread. John has explained clearly about that. So, Office 365 for Mac should remember the file last saved location by default.
I tested again in the latest version 16.27, try to test both files saved in Desktop and OneDrive local sync folder, but I still can’t reproduce the same issue. When I save as them, the prompt window always shows the correct location where they saved last
time.
I would first suggest you try to remove the preferences or cache files to check whether any issue is caused by corrupted preferences or caches. To do this, you can
1. move the file to the desktop: ~Library/Preferences/com.microsoft.Word.plist.
2. move the file to the desktop: ~Library/Preferences/com.microsoft.Office.plist.
3. move the folder to the desktop: ~/Library/Containers/com.microsoft.word
Then re-launch your Word app to see the result. If the steps above don’t fix the issue, that means the issue is not caused by these files. You can move them back to their original locations.
If the issue persists, please kindly provide us the information below for our further investigation:
1. Please provide us the client version information. You can go to Word > About Word to check that.
2. Please provide us the OS version.
3. Does the issue occur to any files saved in any locations?
4. Where does the save as location point to? Does it always point to a specific location?
Best Regards,
Rena