I updated to the latest version of creative cloud on my Windows 7 PC yesterday and just discovered it reset the Folder Location for synced files from my custom directory to the default location. I haven't lost any work but the time it's taking to move things back is very annoying and making work difficult. Dev team may want to look at this problem for future releases and anyone about to update bare in mind this may happen to you.
This is the second time it happened to me. This time I was prepared and was ready to halt it immediately but the folder location reset happens and file sync begins before the settings to change the folder location are available to change. I, like a great many people, use an SSD for my operating system and having all our Creative Cloud files located on the same drive is impractical.
The last time this happened I halted it halfway through the transfer and changed the folder location back to the one I had chosen. It then determined that the half-finished transfer on my C: drive was the most recently updated version and so used that, clearing out the initial directory. I spent a full day recovering files from the archive.
This time, it has renamed my existing folder with "(unknown)" at the end. At least it didn't delete it all over again.