The folder name where the doc is stored is random, but is at Local/AxCrypt.
My comment only applies while AxCrypt is open (i.e. you’ve entered your password), but I wonder if the decrypted document can be captured from the clipboard. Also you would have to remember to close it every time you leave your computer (or log off and risk the person behind you hasn’t seen you enter your Windows password several hundred times). If it’s an ‘on the fly’ encryption situation and the document is only readable by the user that sounds better, but I don’t know enough about the security of ‘on the fly’ or accessing the clipboard remotely.
If you only have the doc open via AxCrypt (and haven’t for example saved it to your desktop) and ‘on the fly’ is OK then it is re-encrypted once you close AxCrypt and my comment doesn’t pertain. The encrypted file is then invisible in the AppData folder.