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You have a .psdc file open, not .psd. That's cloud saving, not local saving to disk. The preference setting doesn't apply.
When saving documents to cloud, it is continuously saved as you go. This is the standard for cloud saving everywhere (for instance, Microsoft Office works the same way when saving to cloud). You have versioning to go back to previous states.
If you intend to save on your machine, you need to choose that in the Save dialog. There's a big button in the bottom left corner o
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in the future, to find the best place to post your message, use the list here, https://community.adobe.com/
p.s. i don't think the adobe website, and forums in particular, are easy to navigate, so don't spend a lot of time searching that forum list. do your best and we'll move the post (like this one has already been moved) if it helps you get responses.
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You have a .psdc file open, not .psd. That's cloud saving, not local saving to disk. The preference setting doesn't apply.
When saving documents to cloud, it is continuously saved as you go. This is the standard for cloud saving everywhere (for instance, Microsoft Office works the same way when saving to cloud). You have versioning to go back to previous states.
If you intend to save on your machine, you need to choose that in the Save dialog. There's a big button in the bottom left corner of the dialog.