I always assumed that simply tapping a character slot in the Continue Game menu (without using the yellow folder) will let you continue your journey from where you last exited the game with this character. However, only recently I noticed that in fact the newest (in terms of in-game time) save slot is loaded.
This happened because I did the arena just for testing, with lots of resting in between, and then switched back to an older save to do the other new quests. Thus, I had an autosave hanging around for some time which was newer than all other save slots, including the one which is created when exiting the game. So I had to take care to always manually select the "Continue" save slot through the yellow folder, otherwise the progress on the current "timeline" would have been lost.
My suggestion is to change this behavior such that the "Continue" save slot is always loaded when tapping a character slot. Otherwise people may accidently lose their progress in a dungeon if for some reason they have a newer save available.
Yes, that's how it works. Maybe what I should do is to show the "choose save" dialog when the Continue slot is not the latest slot.