Game settings don't save

I am experiencing a strange bug where my settings in POE2 don't save. I have a feeling the root cause may be because I forcefully uninstalled OneDrive from my computer, and so now there is some kind of pathing issue.

Now in my game folder, every time I launch POE2, it creates a new local folder with random characters and puts a 'My Games' folder inside it with 'Path of Exile 2' as a subdirectory. This behaviour persists even if I manually create the folder "Users\(username)\Documents\My Games\Path of Exile 2". I also tried a fix I found on the internet to set it to Read Only, but this also didn't work. I am on windows 11 24H2

Also in the logs, it shows this line:
2025/09/02 07:16:02 780500 b394a372 [INFO Client 5316] [ENGINE] Settings directory: \My Games\Path of Exile 2\

Heres another strange log entry:

2025/09/02 07:17:40 878421 8fba8a66 [WARN Client 5316] [EShop CallForAction] Failed to load: 朿Þ\My Games\Path of Exile 2\EShop/calls_for_action_e3b0c44298fc1c149afbf4c8996fb92427ae41e4649b934ca495991b7852b855.json does not exist.