Loki by default looks in the following folder:
C:\Users<login>\AppData\LocalLow\IronGate\Valheim\characters\character.fch
Steam Cloud Sync'd characters have been moved are in the following folder:
C:\Program Files (x86)\Steam\userdata<NUMERICSTEAMID>\892970\remote\characters\character.fch
As a temp workaround users can copy the character to the other location, edit, then move it back.
Would like to have the option to edit either local or cloud sync'd direct from Loki