This is an odd, non-standard location and would have required root/sudo to install there I think. /var/lib
sub-folders should not, I think, be used as live folders, they are system folders AFAIK.
Actually, thinking about it and having tested my own install, I think that having the working directory as the Node-RED installation folder should be considered a BUG. I'll raise a separate thread to have it discussed.
Anyway, the location is non-standard but does not look like a container folder and does not look like a standard npm
or Dave's script install either. So to sort this out, as jbudd has asked, we need to know how Node-RED is installed. Without that information, I doubt we can help much more.