When opening a document from inside an application it is not necessary to navigate to the folder where the document is located. Instead, use the search box at the upper right corner of all Open windows. Search for the file by name or content. The results will be displayed in the Open window for you to select the one you want.
Related: Quick Look in Open Dialogs, Quickly Always Open With, Open Enclosing Folder, Search By File Name, Set TextEdit As Default App to Open Word Docs.
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