Problem after moving Photos library out of “Pictures” folder

I changed the location of my Photos library on my Mac (macOS 12.3). It was originally located on an external HD, but I recently moved it to the “Pictures” folder (under my home folder) on the boot disk. Today I decided to make another change and created a “Photos” folder under my home folder (I now have a “Pictures” and “Photos” folder at the same level). I moved the Photos library into the “Pictures” folder.

A couple minutes after the move, another Photos library was created in the “Pictures” folder with the identical name, but with a couple differences. The new library was ~60 MB in size, while the original is ~200 GB. Also, the new library shows the entire extension (XXX.photoslibrary), even though I have the “show extensions” option turned off in the Finder.

The original (moved) library opens as expected when I double click. The new (small) library also opens, but gives an error message “Cannot Import Item.” I cancel out of the message and the library opens and appears the same as the original.

- Have I violated a fundamental MacOS principal by creating the “Photos” folder at this level, then moving the Photos library there?

- Can the new, smaller library be deleted? Will it be recreated if I do?

- Can I simply move the original library back to the original location, or has the library been “split” into two files and both are now needed?

I was planning on moving my Lightroom master photos into the newly created “Photo” folder, plus consolidate several “Photos” libraries in the same folder. It appears that moving the “Photos” library was a mistake!

Any help would be appreciated… I am nervous about moving anything at this point!