Please see the following excerpt taken from our article on How the Element Repository Works
During test execution, the root Page node is not actually used to locate the element. The execution engine only uses the Frame, Silverlight nodes, and the element's Find Expression to locate the correct element to interact with during any test step. This allows the test to continue to work when you need to test in a different testing environment (e.g. a Development server, then a Staging server, then a Production server).
Since your application uses Frames, and as you've discovered, Test Studio must locate the Frame first and then its child elements. Unfortunately you've hit on a limitation where there is no global project setting to set UseBaseUrlHost
to True by default. You should not need to alter the elements themselves however, just the Frame nodes. Although cumbersome to change at first, the maintenance should be low moving forward as newly recorded elements are nested under the already changed Frame node.
the Telerik team
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