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Hi Paul,
After doing some research, I just find these two threads talking about this:
Change location of back-up file copies
My excel backups folder is empty
(I know they're not using Office 2016, but just as references.)
Besides, since this is an Office client usage question and our forum mainly focuses on Office 365 for Business online services related issues, I also suggest you post this question in our Excel Forum to get professional support.
Appreciate your understanding.
Regards,
James