LR saves PS-edited photo into a new folder

[matthewg4037372]

Hello! Since updating to 14.3.1, whenever I edit a photo in PS (I'm using Beta, 26.9.0, which I used before with no issue), close and save, instead of saving it into the original folder in LR, it creates a new folder at the main root with the same name as the original folder and puts it in there.

For example, currently editing:

2025>2025-06-07 Ally and Mike

Edited an image in Photoshop, closed and saved, it took me back into the above folder but the edited one was no where to be found. So I looked over under "folders" and there was a new folder listed on my HD:

2025-06-07 Ally and Mike 

With 1 image in it: the edited file.

This is a problem because

A.) I just want the edited file to go into the original folder, like it always did and
B.) If I try to temporarily rectify it by dragging the edited file into the original folder, I get the error "this file already exists at that location" even though it does NOT exist. I know this because it has been named something different ("filename_Edit.tiff") and because when I browse to the original folder and look for it, it's not there- even if I sync.

Is this a bug, or do is there a setting somewhere I need to change?

[dj_paige · Accepted solution]

Sounds to me like this is the capitalization error. The problem and fix are described here:

https://www.lightroomqueen.com/capitalization-catalog-error/

Unfortunately, it does not discuss how to prevent this from happening again.

Does this also happen with the non-beta release of Photoshop?

[matthewg4037372]

This worked! Thank you so much!