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Most of the time I run TextPad with timed backup turned on. However if I'm working - as I sometimes need to - on very large files, which need a lot of searching but very few changes, I choose to turn backup off as the time it would take to re-make the changes to a file is minimal whereas the time ...

All my drives are NTFS. Sorry for misunderstanding your question.

DiB1: Which filesystem are your files on? Sorry, I should have mentioned that anyway. Windows 11 21H2, with Bitlocker active on the drive holding the relevant files.

DiB2: On General Preferences, is "Working folder follows active document" set? Yes, it is.

Opening a file in another folder ...

I did try to Search the forum in case any of this had been covered, but Search doesn't seem to be working at the moment.

Over the many years I've used TextPad, updating to new versions has been transparent - no problems at all.
However I've just updated (from somewhere around v8.16) to v8.23.2 and ...