Offline chars missing from Save folder D2LOD

So… I create a character on D2 LOD and the character shows up. I open HE and when I go to the C:\Program Files (x86)\Diablo II\Save using HE the offline characters show up.

IF I GO DIRECTLY TO THE FOLDER NOT USING HE nothing shows up. I have to open HE.ditor. and copy the character file and then paste it into D2R folder for offline. Reinstalled restarted all that blah blah.
Any ideas or any one run into this issue?

Again, the D2 LOD (Classic) Save folder is there but the character files are not unless I open the SAME EXACT file path (used copy/paste). Makes no sense to me.

Show hidden files/Folders is on.

Local/offline character saves are stored in the following locations:

Diablo II Resurrected:
C:\Users\Username\Saved Games\Diablo II Resurrected\

Diablo II/Lord of Destruction (Original game)
C:\Users\Username\Saved Games\Diablo II\