Display Surface Initialization Failed - PLEASE Help?

Regarding the install location, I think it's unlikely to be causing this issue for you.  The Creative Cloud Desktop application allows you to specify a non-default location, and as far as I'm aware this is a supported configuration.  It's conceivable that the location or permissions associated with that location could factor into a GPUSniffer failure, which is a more likely cause of your "Display Surface initialization failed" error.

In your application's install location, there is a "gpusniffer.exe" file, and if you open a Command Prompt window and run that exe file, it may indicate a failure, and point to a possible resolution for the failure.  If it turns out that a GPUSniffer failure is causing your "Display Surface initialization failure" error, it might be resolved by a driver update, or a system reboot.  

The screen cap you shared looks like you're getting this message in AME, not PrPro, but the write-up says AME is working okay for you?  Can you share information about your graphics card(s)/driver(s)? 

You need to install all software on the system drive C.