Thank you AirdanMR - I think I've tried this before, and it didn't show what I expected based on a folder I had just updated. But I'll give it another try.
@AirdanMR - Here's an example of where it doesn't show me what I expected
I just opened a file from a folder in Word and closed it without saving it
I want to create a new file in that folder
That folder is not in that list
Never noticed! Maybe my workflow is different, but I checked and you are right, if you only open one file and close it, then Word won't show the folder - file in recent files, you have to save it first for that, it's a bit weird.