Answered
I missed your comment my first time reading this thread, but I noticed the same issue for myself. Here's how I changed the folder.
1. Go to Illustrator File Handling preferences
2. Select "Choose..."
3. On Mac, press Cmd+Shift+G
4. Type in this path exactly:
/Users/YOURUSERNAME/Library/Preferences/Adobe Illustrator 26 Settings/en_US/Data Recovery
5. Choose that folder
6. Select "OK" in the preferences window, and you're done!
You might also need to navigate to that same folder in Finder and enable "Read & Write" access for the folder.
This seemed to fix the problem for me!
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