How to move Audacity setting data directory to another location, such as Audacity installation directory ?
use Edit > Preferences and go to the Directories pane - see this page in the Manual: https://manual.audacityteam.org/man/directories_preferences.html
I would not recommend storing the project data in the application folder - that is normally considered bad practice (in many cases it is a privleged inaccessible location for data storage anyway).
WC
As waxcylinder wrote, that probably won’t work because the installation directory should not be writeable for a standard user. If it is, then your computer security is badly flawed.
Depending on what you are trying to do and why, it may be a better option to use a “portable” installation of Audacity in your user space, rather than a “system installation”.
Perhaps you can tell us what you are trying to do and why.