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Photoshop elements 2022 all of a sudden will not automatically save images to the original folder. Saves to a root file unless I point it to the origination folder and I have to that each time a work on an image. Never had this problem before with this or any prior version of PE.
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Go to the Edit>Preferences>Saving Files dialog and make sure that the box to Save As to Original Folder is checked.
If it is already checked, try resetting the preferences file. Go to the Edit>Preferences>General tab and click the Reset Preferences on next launch button.
And/or when you you save the file, check the box to Save in a Version Set with Original.