Saving settings on word for mac

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I have looked for answers and the only option seems to be to sign out of my Microsoft account. My main point, however, is that I want to set it so that it NEVER has the initial online save prompt. I find this behavior confusing and because of it I have often saved things online and been unable to find files. that causes a prompt to save on my mac, which I do (and then the.

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gif demonstrates that sometimes it prompts for saving online and sometimes it prompts for saving locally: How I can disable the default online save location in current versions of Word for Mac? I see that it is possible to 'Set Default location' to online locations, but I don't see a way to do the same for 'On My Mac' locations.