Double Hierarchy in LrC

Hi - this issue started with Mac OS Ventura 13.5 or 13.4 when Apple required 3rd party cloud programs to be moved to a more secure location on the disk.  I am now on Mac OS Sonoma 14.0 and LrC 12.5 but it started on LrC 11.

When I import, photos from my hard drive into LrC the "To" in LrC is My Catalog because I wanted to find them in the same hierarch as what is on my hard drive and I use the Add function.

I used to have the same view in LrC as I had on my hard drive.  Now I have a 2nd hierarchy in LrC and it's really mind boggling why it's doing it.  Is there a way to change/fix this so it's all in the lower view under drop box and not the top drop box view?  See attachment.