It depends a bit what you want.
If you are already happy with the current folder names and you only want to update the tags, then configure Picard to only update the tags. Disable Options > File Naming > Move Files for this. If you want the file names getting updated, you can leave the “Rename files” option enabled, otherwise disable this as well.
If you want Picard to create / update the folder structure then you have to configure this fully in Options > File Naming:
- Enable “Move files when saving”
- Set you “Music” folder as the destination directory
- Set a proper file naming script, using %artist% as a folder name
As I read it you are not interested in album names, just artist and songs. You haven’t told exactly how you would like the file name to be, but I assume probably just the song title and nothing else. In this case the most simple renaming script for you could be: