I think it's a bit different issue. I understand how the export location thing works.
The problem is that it creates the "Audio Export" folder even when I'm not exporting the audio but only editing the MIDI tracks.
It also creates the empty "Audio Export" folder at where it is mentioned in the location settings or the export dialog, even when I directly export to the project folder.
Where it creates doesn't matter, auto creation matters. Am I making sense?