Your project
Where your project lives
Your project is a folder, in a place you picked, containing a real Godot project. Stage Engine does not hide it somewhere and does not own it.
You choose where it goes
There is no Stage Engine projects directory. When you make a project you name it and choose a parent folder, and the app creates a folder with that name inside it.
The app remembers the last place you chose so the next project starts there, but that is a starting point and not a lock — you can put every project somewhere different.
You can also point Stage Engine at a folder you already have. In that case it works in place, and it will only do so if the folder is empty.
Project names cannot contain slashes, colons or backslashes, cannot start or end with a space, and are capped at 80 characters. Those are filesystem rules, not ours.
What is inside
A new project contains a project.godot file, a scenes folder, and a main scene. That is a real Godot 4 project — the same layout you would get from Godot itself.
From there, whatever you and Director 1 build gets written into the same folder as ordinary files. There is no database and no proprietary container in the middle.
If you move it
Stage Engine keeps track of the folder each project is bound to. If that folder is moved, renamed or on a drive that is not connected, the app notices and blocks Play, Export and Open in Godot editor until the folder is reconnected, rather than acting on the wrong place.
The tooltip in that state says "Reconnect the game folder". Nothing has been lost; the app has just stopped guessing.