Previously in elementary OS when I opened a new tab, the new tab would open in the same location that I have in the existing tab. But now, it resets to home. How can I change this?
This is the expected behavior. If you want to open a new tab with the same location as the current tab, you can open a duplicate tab by right clicking on a tab and selecting "Duplicate".
If you'd like to permanently change the behavior so that new tabs always open with the directory of the currently focused tab, you'll need to use either dconf Editor or the
gsettings command to set
org.pantheon.terminal.settings follow-last-tab to
If you have Elementary Tweaks then you can go to Terminal and enable Follow last tab.