Recently I've had a project which always had behaved normally start placing new files in my home folder. I'm not sure what started this, but I've found out that the issue occurs if the project folder or one of its parents have a Finder tag. I don't know if the same happens with the 'old' Finder labels. I'm surprised this hasn't been discussed yet, one would think at least one developer would be using tags in their filesystem. Xcode 15.1 seems to default to the first parent it can find that doesn't hava a tag. I don't know about earlier versions. Apparently, the solution is to remove the tag AND clear the build data. An Xcode restart seems not to be needed.