This is a known issue and is filed as a minor bug in: https://jira.spring.io/browse/STS-4406
A fix for the issue can be found on stack overflow here : https://stackoverflow.com/questions/40724146/sts-app-on-mac-10-12-1-always-creates-a-new-org-springsource-sts-folder-in-ecli
The solution in case anyone doesn't want to open and read from stack overflow is to simply move the STS.app file from the folder where you extracted it from to the 'Applications' folder using the Finder.
This is a known issue and is filed as a minor bug in: https://jira.spring.io/browse/STS-4406
A fix for the issue can be found on stack overflow here : https://stackoverflow.com/questions/40724146/sts-app-on-mac-10-12-1-always-creates-a-new-org-springsource-sts-folder-in-ecli
The solution in case anyone doesn't want to open and read from stack overflow is to simply move the STS.app file from the folder where you extracted it from to the 'Applications' folder using the Finder.