It is asking to move to /Applications (in the root folder).
You did mention that the app is in the ~/Applications folder (i.e in your home directory). So I presume there was a reason for installing it there.
I did not say the app is in the ~/Applications folder in the Home directory.
Again: how are you trying to launch the app? From the disk image? If so, that is incorrect. It needs to be installed in the /Applications directory - Shift-Command-A in the Finder.