I resolved it on my windows machine by creating sym link.
Open CMD as admin on windows and do the following command -
mklink /J “C:\Users\YourUser\Documents\Unreal Projects\Projectname” “D:\projectdestination”
Expected output:
Junction created for C:\Users\YourUser\Documents\Unreal Projects\Projectnamel <<===>> “D:\projectdestination
Substitute the paths and names according to what you have. Apparently for some reason It does not properly create symlinks when you choose to Browse for a project instead of Create new project. Very unpredictable behavior…. and for some reason it searches in the default folder for Unreal Projects created on install …. so with this we proxy our project trough this folder instead….. Lost 1 day dealing with this …. very furstrating….