Then click Today at the left end of the status bar and pick the folder for your notes.
Settings
Setting
Scope
Default
dailyNoteButton.folder
machine
empty (ask on first click)
The folder is an absolute path. It is declared with machine scope, so Settings Sync does not copy it: each computer keeps its own path (for example /Users/me/notes/diary on a Mac and C:\Users\me\notes\diary on Windows) while the extension itself still syncs.
Commands
Daily Note: Open Today's Note — same as the button.
Daily Note: Choose Folder for This Machine — pick a different folder.
Remote - SSH
The extension runs on the remote host, so the folder is a path on that host and the setting is stored in that host's settings.