Correct, in the recent update we removed those settings from the WA_Globals. The HTMLEditor will create a files/cms_files folder and it will use that folder to store your images, but if you wanted to update that, open your cofiguration.php file which is located under HTMLEditor/editor/plugins/kfm/ and change those two settings to the folder you want to upload to:
$kfm_userfiles_address = '../../../../files';
$kfm_userfiles_output = 'files/';
In addition if use the upload tab in the image upload, you also need to change the config.php which is located under HTMLEditor/editor/filemanager/connector/php and change this setting:
$Config['UserFilesPath'] = 'files/' ;
to match where you want the files to be uploaded.