Configuring hard drives for PS/LR

I am upgrading my Windows 11 PC with 32 GB RAM and need help on how to best configure my hard drives for Photoshop, Lightroom (cloud) and Lightroom Classic.  So I have two internal drives and an external 8 TB Seagate hard drive. My OS and apps are on my C Drive (500 GB with 202 GB free) and currently my photos are on my other internal, E: drive (1 TB with 446 GB free)  which has space, but I am wondering if I should move photos to the external - I do know that I would need to move in LR (cloud) to preserve editing.  But if I do, do I assume correctly that that will also be where I find photos in Photoshop and LR Classic, not just LR?

Since I have my photos in a One Drive folder on E:, not a folder titled "Photos", or whatever, would I simply move the One Drive folder? I'm not well informed about all of this, obviously.  Is there a step by step tutorial about how to do this safely?

Also, I need to know how to properly configure my scratch drive - which I know litle about. I understand that it is on the same drive as my OS by default - should I change it?

Thanks for your help and patience!