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4 years worth of updates and this issue persists? Does Adobe not care about Dreamweaver any longer? Should I be pivoting to some other program?
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[Moderator branched & moved from old topic to new one.]
You have not defined a local site folder.
Go to Site > New Site and tell DW where your local site folder resides on your primary hard drive -- e.g. C:\MySite\ Then select your site folder from the Files Panel drop-list (see screenshot).