Steps be tested in X3D (I haven't tested this so please correct my steps if necessary):
1) Start Sonar
2) In preferences change file locations to a removable USB drive (or other external hard drive, although this scenario hasn't been tested).
3) Quit Sonar
4) Disconnect USB drive
5) Start Sonar
6) As expected a dialogue appears about Sonar resetting Preferences. Two buttons are displayed, Cancel/OK.
7) Click Cancel
EXPECTED
If a project is open and unsaved for some reason user is prompted to save or discard.
Otherwise no settings are changed. Sonar quits.
ACTUAL
Sonar discards settings such as folder locations (behaviour is destructive).
NOTE
Rather than have a "CANCEL" button I think the button should say "QUIT".