This document outlines the changes that need to be made to local teams app, to change the default document location where files are opened. There is a licence requirement for this, it requires Microsoft E3 /E5 or Education E3 / E5.
First of all, click the 3 dots next to your profile picture. Then select settings. NOTE: You may see just the 3 dots or you will see the Unlock Premium with the 3 dots.
Once Settings have been opened, on the left-hand side, there is an option for Files and Links select this option and then select desktop.

After these changes are made they are saved automatically, click on the left-hand side of the screen to go back to your chats.

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