This is not applicable to my comment as I'm not talking about the ask of having it in a "networked folder".
The ask is exactly to NOT BE in a networked folder with the possibility of the end user to select in which folder they want to have their iCloud Photos to be synced rather than only be bounded to the Windows 11 default Library/Photos/Pictures folder.
The responsibility of allowing the user to change the default folder, from the Microsoft specialist information it's 100% on Apple's end, Apple has delivered the app without the simple ability to be able to change the default iCloud Photos location which will always be the default Windows 11 default Pictures/Library/Photos location rather than just allowing the end user to change the directory with freedom.

This is such an amateurish UX/UI decision considering factors such as anyone that's using an external/networked folder as the default Windows 11 Photos/Pictures/Library or someone who doesn't have enough space in the storage drive which contains his default Pictures/Photos/Library.
Example, most of users let the default which is likely to be at C:\.
Sometimes his backup drive is the D:\ which has way more space.
Why shouldn't the end user be able to simply create an iCloud Photos folder at D:\ then just change the (currently locked) setting in iCloud app (as it used to be not locked in past versions) to this folder that he created?
I've seen hundreds of cases in which that happened and even made folks lose their backup due to it.