@jelli768 The Sims 4 folder inside the Steam folder is fine: it's where the game gets installed when you use Steam. This has nothing to do with your saves or other user files. Those are in the user folder, i.e. in Documents > Electronic Arts > The Sims 4. Here's how to double-check the full file path the game is reading:
https://sims4.crinrict.com/eng/2018/07/how-to-find-your-user-folder/
If you want to move this folder, here's how:
https://crinrict.com/blog/2020/02/moving-windows-documents-folder-to-external-drive-via-symbolic-link.html
If you want to install the game elsewhere, you can do so as well, but as a separate step. In the EA App, just choose the new destination folder when you click Download. In Steam, you'll need to make a new Steam library and choose that as the install locaiton.
Regardless of where you want the game's program files and the user folder should NOT be in the same location. You should always have two separate "The Sims 4" folders to keep the data from mixing.