Hi,
1.It is recommended to use xcopy command to move UPD files between drives in order to inheritable permissions in the new location.
Reference link:
Migrating User Profile Disks in Remote Desktop Services
https://techcommunity.microsoft.com/t5/ask-the-performance-team/migrating-user-profile-disks-in-remote-desktop-services/ba-p/375630
2.Second question - Can I set (through GPEDIT on the RDS server) to point to an alternate location?
I found following blog mentioned that ProfilesDirectory key under HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\ProfileList was used to store the info of location for profiles.
Mounting RDS User Profile Disks On Another Drive
https://samcogan.com/mounting-rds-user-profile-disks-on-another-drive/
Please note: Information posted in the given link is hosted by a third party. Microsoft does not guarantee the accuracy and effectiveness of information.
Hope this helps and please help to accept as Answer if the response is useful.
Thanks,
Jenny