Word app creating folders?

We've just started using Office 365 and the 365 online apps, and I'm keen to start using the online app versions of Word etc. (I don't have a desktop subscription).

However, I've started to create some basic word files, and have noticed I keep getting duplicate 'folders' of the files appearing on my computer. (See screengrab.) They look to have temporary names - but they don't disappear when my files are closed. 

Is this a setting somewhere I'm missing that I can disable? Otherwise it's going to drive me insane!

Any help gratefully received.

Lisa