Why does Premiere put the project file outside of the folder which I selected as the Project path?

I am, and I found something strange when testing this out after you comment. It works fine with a Folder within my Desktop folder for example, but when doing exactly the same thing a Google Drive folder (via Finder) it behaves as I described when doing the exact same thing. I can't make a recording as it contains all sorts of work related docs but this is really annoying.