After running merge processing, the Error and Control Reports are placed in the User's root level directory (i.e. /export/home/app/ta/mpttest/output/users/) as well as the specified individuals directory. It should only be found in the specified individuals directory.
This is a known bug documented in the ToDo Article 2288676. There are no plans to fix this bug.
To prevent the accumulation of too many duplicate files, clients are encouraged to archive or clean out the User's root level directory on a regular basis.