Fixed in version 4.12.1+ (Xubuntu 18.04).
https://git.xfce.org/xfce/xfce4-panel/tree/NEWS?h=xfce-4.12
** Changed in: xfce4-panel (Ubuntu)
Status: Confirmed => Fix Released
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https://bugs.launchpad.net/bugs/1407357
Title:
Directory Menu panel plugin doesn't remember custom base-directory
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