I have dragged my resource files to the copyFiles1 page for MacOS. In both debug and compiled applications the app file has Contents/Resources folder, but none of the files I have dragged into my resources folder. This works fine on other applications I’ve written and can compile. Using Xojo 2021 R2.1
Yes I can. However I’ve found where they are. Instead of under the “Resources” folder, which is present, the files are listed under the “MacOS” folder which contains the app and is at the same level as the Resources folder.
I have found the same behavior also occurs on a virgin test program, but as I say, I can compile older programs and get the expected result.
You are missing some important part on your screenshot:
we need to know the Destination. In my screenshot is ‘App Parent Folder’ that needs to be changed to ‘Resources Folder’
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Alberto is explaining what I was trying to glean from a screenshot of the whole IDE. We need to see what the Behavior settings are.
Once you’re in screenshot mode with cmd-shift-4, press the Spacebar to switch to Window-Select mode 
Thank you. The destination field was the problem. Works fine now.