Initial working folder resets to C:\Windows\System32
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MATLAB 2018b always starts with the working folder C:\Windows\System32. I've changed the preferences so that the initial working folder should be the last working folder. I've also cleared the "Start in" path from the MATLAB shortcut. I've checked the matlab.settings-file, and it seems that the "LastFolderPath" always resets to C:\Windows\System32 on the startup. When installing 2018b I copied my old preferences from 2016b version. I suspect this might have caused the problem.
Chi Zhang on 21 Apr 2020
I have the same problem as yours. You may edit startup.m to fix it.
You can create an startup file as following
and type cd command in the startup file to change the folder as you want.
cd 'the current folder path you want to set';
Alhun Aydin on 2 Apr 2019
I had the same problem in 2019a and although I searched the internet and tried every "solution" that I encountered, it does not change. It's funny that everybody else is fine with this weird thing.
Only solution that I found is a workaround. You can create the shortcut of the matlab.exe and then right-click, properties, write the path you wanted into "start in" field. If you use that shortcut to enter MATLAB, it should work.