Community Tip - Learn all about the Community Ranking System, a fun gamification element of the PTC Community. X
That depends:
If You want global settings for all users, put it in the <proe-install>/text folder.
User-specific settings are best in the working directory. That file should only contain changes wrto the global settings.
If You have different user settings, copy the file to the working directory before starting ProE. (Remember, ProE will add an index when local changes are made.)