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I am having the same problem. not sure what is wrong and why the In-Game settings won't save. It is as if I am logging into the game for the first time on the computer everytime I open the game. All the in-game menus and inventory requires me to read the tutorial everytime also.
I did see some Youtube videos and another thread on the forum that mentioned that you needed to go to %localappdata%/M1/Saved/Config/Windows and set the file named "gamerusersettings.ini" to be read-only. However, when I tried this I noticed that the M1 folder didn't exist at all.
After some more research (by looking through other threads for different games with a similar issue as this) I learned that you need to run the game as an admin for this save file to be registered. However once I ran it as an admin when I tried to open up the game it got me to the title screen but just ended up crashing.
I then stopped running the game as an admin to see if just having the file would work but noticed that it didn't change anything so I figured I still needed to run the game as an admin.
After wondering how I was able to run the game I ended up deciding I should just also run "steam.exe" as an administrator as well. After doing this I finally saw that the game ended up saving my settings.
To run these programs as an admin you can do the following:
Local Disk (C:) [or wherever you installed the game like a different drive]/Program Files (x86)/Steam/steamapps/common/The First Descendant/The First Descendant.exe
Right click on that .exe file and then scroll the Properties. Go to the compatibility tab and tick the box that says "Run the program as an administrator".
As for running steam as an admin go to C:/Program Files (x86)/ Steam and then you can scroll to steam.exe and follow the same steps regarding properties/compatibility etc.
Let me know if this works for you guys!
Compress the M1 folder in a Zip or RAR.
And just delete the M1 folder, reopen the game and you're done.
you have no idea how enraging this was you saved my sanity here