There is a mechanism to store config files in the same folder as the
Blender executable. The typical use case is putting Blender on a USB
drive and taking the config with you.
However the problem is that this is using the 4.2/ folder, which is fine
for config/ but with e.g. addons, studiolights and now extensions this
is mixing user and system files. This requires exceptions, doesn't
work well in some cases and is just generally not great design.
Instead use a folder named portable/ that is separate.