While accessing web application local file should get download in local drive instead of downloading in PSM drive.
Steps
a. Download the attached file "chrome.adm" and copy it to the PSM server.
b. Open gpedit.msc
c. Navigate to Computer Configuration | Administrative Templates
d. Right click Administrative Templates and choose "Add/Remove Templates"
e. Click the Add button
f. Navigate to the "chrome.adm" file and click Open.
g. Click close on the window
h. Navigate to Computer Configuration | Administrative Templates | Classic Administrative Templates (ADM) | Google | Google Chrome
i. Set "Set download directory" to "Disabled" and it will be removed from the registry.
j. Set "Ask where to save each file before downloading" to Enabled
k. Run the command gpupdate /force on all relevant PSM machines.
How to add ADM file in PSM chrome .Please refer below link:
To control it from adm file, you will need to import the adm file to your PSM. Please download the adm file from Google https://support.google.com/chrome/a/answer/187202?hl=en
Here is some instruction from YouTube.
One is to import the policy to local GPO and the 2nd video import the policy from Group policy manager console. You may need the help from your AD admin.