@ryan.developer99 Yes, it is. It only works in src folder. Because, take a look at the index.js file in src folder. You will see these:
The index.js is the main rendering file for the react project. And it only imported the App.js file from the src folder and compile it with babel.
I think if you import the new file that you created, in index.js and render it instead of creating another index.js file.
Hope This Help