Unlike Internet Explore where you can easily locate all your favorite files right in Favorites folder under your user profile, Microsoft Edge stores all your favorite files quite differently. They are still under your user profile but are buried in a much deeper location. Most importantly, all favorite items are stored in a database, as opposed to an HTML file like they are in Internet Explorer.
Open File Explorer in Windows 10, and navigate through the following path:
%LocalAppData%\Packages\Microsoft.MicrosoftEdge_8wekyb3d8bbwe\AC\MicrosoftEdge\User\Default\DataStore\Data\nouser1\120712-0049\DBStore\
See the EDB file named spartan.edb listed in the folder above. That is where all of your Microsoft Edge favorites are stored. It’s interesting to see the file name is after the browser’s original code name.
Since the database file is not editable, you can only import favorites through Favorite Settings in Edge. Or delete the whole file to start from scratch. You can also copy the EDB file to a different place for backup. Make sure Microsoft Edge is closed before doing any of these changes.
Thanks to the commenter below for mentioning an update on this post.
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This article needs to be updated, since after the "November Update", Edge no longer stores its favorites as files, and instead now uses a database