33 minutes ago, Arez said:And he said the Pimps will eventually make it so you can't put the Mods folder in the main directory at all.
As of now you can have the folder in either location, or both at the same time.
To be clear, you can set the folder to be in any location that you want and it is unlikely they will change that. So even if, by default, the game doesn't look in the game folder, you can still have it there if you set that as your user data folder location. Though, if Gamepass didn't allow it there, that is a different matter. For "normal" versions of the game, you can have it there if you choose.