@crane3 is correct.
I just checked on my Mac and Android File Transfer will not show anything labelled 'Internal storage'. What it displays is in fact 'Internal storage'. So just drag and drop the update file to the empty space below the folder listing, and it should get copied to the right place ('the root').
If it accidentally goes into a folder, it won't hurt anything, but the update won't work, and the file will just be taking up space.
The update file will get automatically deleted as part of a successful update.
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