[Windows] CC Files Desktop Folder Missing Files/Folders (solution but needs fix)

Problem
So far I've been saving my projects using the 'Save to Computer' option rather than 'Save to Creative Cloud' because I thought I was saving them locally (so that I can access them regardless of internet connectivity). To my surprise this morning, when I started up my computer I found that all of the folders, and subsequently the files in them, were just gone. I checked the browser application, looked through the archived/deleted section of both the browser application and the desktop application and they are not there. 

My suspicion was that there was a syncing error in sending them to the cloud, but I have NO IDEA why CC would just DELETE them from my computer entirely when the sole purpose of having a 'save to computer' option is that the files are stored locally. I've attached two screenshots (1.jpg and 2.jpg) of the prompt I receive when I try to click on the folder from the Quick Access feature in Windows File Explorer, and of my Creative Cloud Files folder (where the folders/files should be). 

Solution
This has at least worked for me, but I was able to find the missing files in C:\Users\<User name>\  where I found TWO Creative Cloud Files folders, the second one with my email and a string of characters appended to it having all of my files (see 3.jpg)! 

So the question is: what is happening that Creative Cloud is creating a second folder and replacing access for the desktop application with the one that has nothing in it? 

My assumption is that it is creating a backup of the Creative Cloud Files folder (maybe in the event of a sync problem), but instead of duplicating the contents of the folder, it's just creating a new one that has nothing in it. So can the engineering team please fix this so that folders/files that are backed up are only copied and not moved? 

Thanks for reading.