All is in your hands, devs just made the system you are not used to. Something isn’t included in user guide, but I’m sure it will be updated soon.
The importance of project folder starts from very beginning. When you create new project, you specify its folder, then save project in that folder.
If you save project somewhere else or later use Save As and choose another foder, the definition of Project Folder won’t change. You cannot change project folder because all assets are in the initial place.
Use Save Archive to make full and clean duplicate to any other folder you want. It means that only then all assets including lyrics (the marker folder) will be copied together with project file to specified new folder and only then that folder becomes Project Folder for the saved project.
Use Save As only to save subversion of the same project into the same project folder. Of course you can save it wherever you want, but keep in mind that it won’t change Project Folder.
If you still use User Documents folder, I recommend to organize your project more seriously, for example, make the project folder - \Live\2025\November. Perform one, two or more gigs and when you decide to change something cardinally, make a clean duplicate (Save Archive) to similar place \Live\2026\March and you will have safe steps to go back to look how it was or restore some pieces, assets etc. If you change only mixer levels, parameters in plugins, simply archive with ZIP only the project file and name it icluding current datetime. I also do it always before every update. Just for safe.
In short - lyrics are not assets that go to Local Assets Folder (specified in Preferences), but they go to marker folder of Project Folder, which won’t change if you save project anywhere outside of initial Project Folder.
Extended.
If you work on one song without loading main project (I see it from your text) and you have it in \Live\2025\test where you fork on all single songs, then save each in MediaBay using Song->Save Song (with MediaBay switched to Local). This will save song with all assets into songs folder of local assets folder and it will appear in MediaBay if you switch it to Local. Then drag it from MediaBay to main project. It will copy all assets to project folder including lyrics.
See, there are many ways to loose something. But the VST Live is flexible enough to keep everything organized.
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