WORKAROUND:
You can manually adjust the location where Toad Data Modeler looks for this folder/files here:
C:\Users\username\AppData\Roaming\Quest Software\Toad Data Modeler\Configuration 1\Configs\
and open the file: 'Application.txc' in Notepad, you can change the path locations here
STATUS:
Waiting for fix in a future release of Toad Data Modeler