No. The IDE still uses C:\Users\ME\AppData\Local\Arduino15 just the same as in Arduino IDE 1.x.
I think caching is more likely to be the cause of the problem.
There is a bug in the Arduino IDE that might cause it to use outdated cached boards.txt configurations instead of the actual ones from the file in some cases:
I'll provide instructions you can follow to workaround this bug. I realize you are on Windows, but I'll make them cover other operating systems for the sake of others who find this topic while searching for a solution to the same problem:
Select File > Quit from the Arduino IDE menus if it is running.
Delete the "User data" folder: Please be very careful when deleting things from your computer. When in doubt, back up!
Windows:
C:\Users\<user name>\AppData\Roaming\arduino-ide\
Linux:
~/.config/arduino-ide/
macOS:
~/Library/Application Support/arduino-ide/
Start the Arduino IDE.
The IDE should now reflect any changes that were made to boards.txt.
Please let me know if you have any questions or problems while following those instructions.
Please be very careful when deleting things from your computer. When in doubt, back up!