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Under Preferences -> Media & Disk Cache, you have the option of choosing the folder where your disk cache and conformed media will be stored. Unfortunately, Adobe thinks we are hapless teenagers who cannot make good decisions, and if you try to select a location outside of an internal hard drive you will be greeted with the error "The location you have chosen is on an external drive" and be asked to choose again, out of concern for performance.
This is 2021 and there are many external storage options that surpass the performance of internal drives. Or maybe you're like me and have internal M.2 PCIe cards that just happen to be recognized as external drives by fluke of the system drivers. In any case, there is a way around this silliness, and on macOS it's by way of symlinks.
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I have no issues using an external SSD for my cache drive. Perhaps something else is amiss. I suggest you file a Bug Report and provide as much system information as you can.
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Are you able to change the media conform directories to external? After Effects allows me to change the Media Cache directory but not the directories in the second half of the dialog, the "Conformed Media Cache"
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Yes, I can. No issues. Also, you did mention an issue with your SSDs being recognized at the OS level as an external drive - perhaps this is causing the issue with AE.
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