I can’t answer about path, I have to check.
I think libraries can be located anywhere, I have to check (you can see how the PreOS dynamic linker search for them, maybe it used SymFindFirst/SymFindNext).
I still use PedroM, writing an assembler from ages
If you plan to develop in assembly, I can share my patched PedroM, which fixes a bug in kernel::LibsExec.