Currently .xcconfig files on Xcode don't seem to follow the folder hierarchy.

When using the top-level configFiles: label to point to individual .xcconfig files, it all works correctly, with the exception of how it's currently displayed in the xcode file drawer. The files I'm pointing to are two levels down the file hierarchy (we have a significant amount of them), but on Xcode they're displayed at the top level. Is this a bug, intended behaviour, or did I miss some aspect of the file spec?

Excerpt of project.yaml with names changed.

configs:
  APP DEV: debug
  APP1: release
  APP2: release
  APP3: release

configFiles:
  APP DEV: SourceFolder/Supporting Files/APP DEV/APP DEV.xcconfig
  APP1: SourceFolder/Supporting Files/APP1/APP1.xcconfig
  APP2: SourceFolder/Supporting Files/APP2/APP2.xcconfig
  APP3: SourceFolder/Supporting Files/APP3/APP3.xcconfig

targets:
  MainTarget:
    type: application
    platform: iOS
    deploymentTarget: "14.4"
    sources: [SourceFolder]
    configVariants:
      - APP1
      - APP2
      - APP3
      - APP DEV

On Xcode they show app at the top level as such:

-  MainTarget
    - APP DEV
        - APP DEV.xcconfig
     - APP1
         - APP1.xcconfig
     - APP2
         - APP2.xcconfig
      - APP3
         - APP3.xcconfig

And the Supporting Files folder appears empty. When inspecting the file locations on Xcode, I can see that it points to the right file, deeper inside the folder structure. Any clues on what's happening is appreciated.

Reproduce the issue using the supplied project.yaml excerpt, especially the configFiles paths, and inspect the generated Xcode project in the file drawer. Determine whether the displayed hierarchy should follow those paths; done means the behavior is corrected or its intended behavior is clearly established.