Finding things in Finder · What's on your external drive
After Transfer Drive, do my shortcuts in Finder point to the new drive?
Short answer: Yes. After verifying the copy, Transfer Drive re-points every shortcut to the new drive and makes it active — asking once for your admin password if some shortcuts are protected. Your old drive is left untouched.
Yes. Once the copy on the new drive is verified and checked for completeness, Transfer Drive re-points every relocated shortcut at the new drive and makes it the active one. Your apps and folders open from the new drive with nothing for you to change in Finder.
It may ask once for your administrator password if some shortcuts are protected — for example relocated apps in your Applications folder. If you decline, or the final check fails, nothing is switched and your current drive stays active.
Your old drive is never modified, so it remains a complete fallback until you decide to erase it. Don't use Choose Drive for this — it's only offered before a drive is set up, because switching that way would leave shortcuts pointing at nothing.