If you receive the message, "You must use a local path for the new file", this usually indicates you're attempting to create a new file at a network location (e.g. "\\DATA64\WordDocs\MINUTES\2017")
This is a network share location...not local to the PC An interruption or loss of network connectivity would result in loss of recording data.
Therefore, the primary copy of recording files must only be directed to a hard drive that is local to the Recording PC.
Although we cannot say if there are other locally attached drives on this system, anywhere on the C:\ drive is local.
For example, using C:\Liberty Recordings is usually successful.