There are two main ways to create proxies for your Premiere project as I understand it:
your sources, select them and right-click, choose Proxy, then Create
your sources via the Media Browser by checking on the Ingest box, change
the settings for ingest to Create Proxies, select your sources, then right-click
When you create proxies with the first option, you have the option to choose “Next to Original Media, in Proxy Folder” when it comes to where the proxy files will live. But with the second option, I can find no such option. The only options I can find with the second option are Same as Project, Use Preset Destination (and I don’t see a way to specify “Next to Originals” when creating a preset), Creative Cloud Files, or Choose Destination (I don’t see a way to specify “Next to Originals” here either).
I will just continue to use option 1 to create proxies from now on if I want them to live next to the original media, but I just can’t help but wonder if I’m missing something with that second proxy creation option. Was leaving the “Next to Originals” option out of that second option an oversight? Or might there be a good reason to leave it out that I’m not understanding? Maybe I’m just missing the option? It just seems really odd both procedures don’t have the same options.
Import first. Select clips in Project. Right-click and select Create Proxies. You’ll get a dialog that allows you to select all parameters. I only use this method. The automatic option is useless to me.