After changing your Finder Advanced search preference to Current Folder, does any of the native Mac applications search in the current folder?
I tried the search scenario with Text edit on its File > Open dialog and the search scope was still "This Mac".
Yes, that is correct. The finder preferences have been changed to current folder.
Have just checked some other programs and Preview defaults to Mac if I'm trying to open a file.
Microsoft Word defaults to current folder when trying to place a file.
Outlook and Mail both default to Mac when trying to attached a file.
Interestingly, all programs seem to default to current folder when trying to save a file, but a search shows up nothing, even though I could clearly see a file with the name I was searching.
So, looks to be an OS issue and for some reason some programs work correctly and others don't?
Thanks for the update Shelly.
Yes, this looks like an OS issue. You might want to start a discussion thread on Apple for the same. I too have started one such.
For the search not showing correct results, there are many threads already on apple discussion forum which might come to help.
Here are a few I found, which might do the trick: macos - Finder search doesn't work properly after Yosemite update - Ask Different