Should Telegram's App Notes be updated?

Account Files Portability - By default, Telegram will store your local account media on the local machine and leave it behind on exit. To ensure it is not left behind, after you create/login to your account, click Menu, Settings, Chat Settings, click Default Folder and select 'Temp Folder, cleared on logout...' and then click Save. This will ensure your synced data is not left behind as you move PCs.

At least as of v1.3.8, there's simply no such menu.
There is Settings=>Advanced=>Data and Storage=>Download path=>Default folder
But since it's a Download path, by local account media did you mean it only affect downloads (videos, images, documents, etc.)? If so, maybe you should rename it to "will store your downloads" to diffuse any confusion.