I've found the culprit! It's the new "start workspace" extension. You can solve this by disabling all extensions under: Preferences > Plug-ins. Then, un-check both "Allow extensions to connect to the internet" and "Load extension panels". Doing so will prevent Photoshop from creating these empty folders in your Local directory. However, this will also disable Photoshop's "start workspace". Photoshop will now open to a blank page instead. I actually prefer this because Photoshop loads up MUCH faster than with the new (and rather buggy) workspace. *If you use other Adobe softwares like Premiere Pro and After Effects, they'll also create these empty folders upon launch... No fixes for them yet. ... View more