Media files upload

It’s supposed to be in files. That’s normal.

What’s in your .htaccess file? That’s what should be redirecting everything.

But why does it say it is automatically saved it to a file that does not exist?
htaccess file is as follows.

# Switch rewrite engine off in case this was installed under HostPay.
RewriteEngine Off

SetEnv DEFAULT_PHP_VERSION 5

DirectoryIndex index.cgi index.php

# BEGIN WordPress

RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ – [L]

# uploaded files
RewriteRule ^([_0-9a-zA-Z-]+/)?files/(.+) wp-includes/ms-files.php?file=$20 [L]

# add a trailing slash to /wp-admin
RewriteRule ^([_0-9a-zA-Z-]+/)?wp-admin$ $1wp-admin/ [R=301,L]

RewriteCond %{REQUEST_FILENAME} -f [OR]
RewriteCond %{REQUEST_FILENAME} -d
RewriteRule ^ – [L]
RewriteRule ^([_0-9a-zA-Z-]+/)?(wp-(content|admin|includes).*) $2 [L]
RewriteRule ^([_0-9a-zA-Z-]+/)?(.*\.php)$ $2 [L]
RewriteRule . index.php [L]
php_value memory_limit 64M
php_value upload_max_filesize 24M
php_value post_max_size 24M
php_value session.gc_maxlifetime 600

# END WordPress

It says files because that is a virtual directory.

And your .htaccess has typos.

DirectoryIndex index.cgi index.php

# PHP Stuff
SetEnv DEFAULT_PHP_VERSION 5
php_value memory_limit 64M
php_value upload_max_filesize 24M
php_value post_max_size 24M
php_value session.gc_maxlifetime 600

# BEGIN WordPress
RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ - [L]

# uploaded files
RewriteRule ^([_0-9a-zA-Z-]+/)?files/(.+) wp-includes/ms-files.php?file=$2 [L]

# add a trailing slash to /wp-admin
RewriteRule ^([_0-9a-zA-Z-]+/)?wp-admin$ $1wp-admin/ [R=301,L]

RewriteCond %{REQUEST_FILENAME} -f [OR]
RewriteCond %{REQUEST_FILENAME} -d
RewriteRule ^ - [L]
RewriteRule  ^[_0-9a-zA-Z-]+/(wp-(content|admin|includes).*) $1 [L]
RewriteRule  ^[_0-9a-zA-Z-]+/(.*\.php)$ $1 [L]
RewriteRule . index.php [L]
# END WordPress

FWIW, you had
RewriteRule ^([_0-9a-zA-Z-]+/)?files/(.+) wp-includes/ms-files.php?file=$20
instead of
RewriteRule ^([_0-9a-zA-Z-]+/)?files/(.+) wp-includes/ms-files.php?file=$2

And that specific line is what tells WordPress ‘Oh, the files directory is special!’ ??

Great. Thanks for you help.