Each library that is added by the user is normally put in a folder of its own in the libraries folder in your sketchbook folder. This is one of the standard places that the compiler will look when you use #include <libraryName.h>. This is also the place that the Library Manager will install libraries
The location of the sketchbook folder can be changed in the IDE Preferences dialogue
Please post the full paths to your sketchbook folder and libraries folder and a screenshot showing the sketchbook location in the IDE Preferences dialogue
Will do, but just read that there are two "libraries", un official Arduino, and one for contributions. The one for contributions is, as you said, under "sketchbook".
There are built in libraries in C:\Users<username>\AppData\Local\Arduino15\libraries which are installed with the IDE
Then there are board specific libraries installed with board libraries and these are under C:\Users<username>\AppData\Local\Arduino15\packages, for example, C:\Users<username>\AppData\Local\Arduino15\packages\esp32\hardware\esp32\3.1.1\libraries
When you install a library manually, using Install ZIP library or using the library Manager the library is installed in the libraries folder of the sketchbook, or it certainly should be