When publishing from UiPath Studio, the package is always first created locally in
C:\Users<UserName>.nuget\Packages
After that studio pushes the package to the destination you selected (Orchestrator Personal Workspace Feed) and the path you see under Home → Settings → Manage Package Sources → User-defined package sources is only used for dependency resolution where the studio looks for existing packages, not as an override for the publish destination.
However, in my environment, I confirmed the latest NuGet package published from the project was also output to the User-defined package sources. How strange.
@gorby this behaviour is not strange actually the thing is when a project is published from UiPath Studio, the package is always built first in the local NuGet cache (C:\Users\<UserName>\.nuget\packages) after that it is pushed to the publish destination you selected i.e. Orchestrator Personal Workspace Feed. And in your environment, the same folder is also registered under Home → Settings → Manage Package Sources → User-defined package sources, so the latest package also appears there. This does not override the publish destination, it simply means the local cache folder is also being treated as a package feed.
After installing a package, is my understanding correct that the package is saved in the folder defined under: Home → Settings → Manage Package Sources → Default package sources → Local
No — when you install a package, it is always stored in the local NuGet cache. The path shown under Home → Settings → Manage Package Sources → Default package sources → Local is just an additional feed location that can be used for publishing or retrieving packages if needed. It is not where every installed dependency is stored.