Moving this discussion to Dreamweaver Forum Discussion.
Are you looking at the expanded Files panel? And you have set your preferences to display the Local files on the left? And you are still seeing them on the right?
Yes that is the case:
And to be sure I did reload Dreamweaver thinking that it was required for it to "notice" it.
Can you post a screen snap of both your Files panel and your preferences page where this is set, please?
Ah, that controls where the files list when you expand the files tab (square icon in upper right of files window) not where the files window appears on your screen. If you click the Expand icon, the files should be listed on the left.
To move the files window to the left of your screen, click the tab that says "Files" and drag it to the upper left of your screen until a highlight appears on the left side, then release.
The "Always show local files on the Left" refers only to the Expanded View in the Files panel.
Click the Expanded View button to see the effect
What you're trying to achieve is to change your Workspace.
Try Window > Workspace > Coder
Change your workspace from Designer to Coder or Coder Plus.