I guess you are referring to the /nol folder referenced three times inside the settings.js file.
// By default, all user data is stored in the Node-RED install directory. To
// use a different location, the following property can be used
// Node-RED scans the `nodes` directory in the install directory to find nodes.
// The following property can be used to specify an additional directory to scan.
This is only an example and will not exist in your system. Instead you should use your home directory. Mine for instance (running on Windows 10) is C://Users/OCM
OCM is my username in windows. By the way, NOL is the username of Nick O'Leary