Remove .config subfolder creation for tool manifests by default

Co-authored-by: dsplaisted <145043+dsplaisted@users.noreply.github.com>

Author: Copilot

src/Cli/dotnet/ToolManifest/ToolManifestFinder.cs

@@ -250,8 +250,7 @@ private string WriteManifestFile(DirectoryPath folderPath)
               "tools": {}
             }
             """;
-        _fileSystem.Directory.CreateDirectory(Path.Combine(folderPath.Value, Constants.DotConfigDirectoryName));
-        string manifestFileLocation = Path.Combine(folderPath.Value, Constants.DotConfigDirectoryName, Constants.ToolManifestFileName);
+        string manifestFileLocation = Path.Combine(folderPath.Value, Constants.ToolManifestFileName);
         _fileSystem.File.WriteAllText(manifestFileLocation, manifestFileContent);
 
         return manifestFileLocation;

template_feed/Microsoft.DotNet.Common.ItemTemplates/content/ToolManifest/.config/dotnet-tools.json renamed to template_feed/Microsoft.DotNet.Common.ItemTemplates/content/ToolManifest/dotnet-tools.json

@@ -418,7 +418,7 @@ public void GivenNoManifestFileAndCreateManifestIfNeededFlagItShouldCreateManife
                 _reporter);
 
             installLocalCommand.Execute().Should().Be(0);
-            _fileSystem.File.Exists(Path.Combine(_temporaryDirectory, ".config", "dotnet-tools.json")).Should().BeTrue();
+            _fileSystem.File.Exists(Path.Combine(_temporaryDirectory, "dotnet-tools.json")).Should().BeTrue();
         }
 
         [Fact]
@@ -440,7 +440,7 @@ public void GivenNoManifestFileItUsesCreateManifestIfNeededByDefault()
                 _reporter);
 
             installLocalCommand.Execute().Should().Be(0);
-            _fileSystem.File.Exists(Path.Combine(_temporaryDirectory, ".config", "dotnet-tools.json")).Should().BeTrue();
+            _fileSystem.File.Exists(Path.Combine(_temporaryDirectory, "dotnet-tools.json")).Should().BeTrue();
         }
 
         [Fact]
@@ -465,7 +465,7 @@ public void GivenNoManifestFileAndCreateManifestIfNeededFlagItShouldCreateManife
                 _reporter);
 
             installLocalCommand.Execute().Should().Be(0);
-            _fileSystem.File.Exists(Path.Combine(_temporaryDirectory, ".config", "dotnet-tools.json")).Should().BeTrue();
+            _fileSystem.File.Exists(Path.Combine(_temporaryDirectory, "dotnet-tools.json")).Should().BeTrue();
         }
 
         [Fact]
@@ -487,7 +487,7 @@ public void GivenNoManifestFileAndCreateManifestIfNeededFlagItShouldCreateManife
                 _reporter);
 
             installLocalCommand.Execute().Should().Be(0);
-            _fileSystem.File.Exists(Path.Combine(_temporaryDirectory, ".config", "dotnet-tools.json")).Should().BeTrue();
+            _fileSystem.File.Exists(Path.Combine(_temporaryDirectory, "dotnet-tools.json")).Should().BeTrue();
         }
 
         private IToolPackageDownloader GetToolToolPackageInstallerWithPreviewInFeed()

test/dotnet-new.IntegrationTests/Approvals/AllCommonItemsCreate.-o#Dotnet-local-tool-manifest-file#-n#item.verified/Dotnet-local-tool-manifest-file/.config/dotnet-tools.json renamed to test/dotnet-new.IntegrationTests/Approvals/AllCommonItemsCreate.-o#Dotnet-local-tool-manifest-file#-n#item.verified/Dotnet-local-tool-manifest-file/dotnet-tools.json

@@ -764,6 +764,22 @@ public void GivenNoManifestInspectShouldNotThrow()
             a.Should().NotThrow();
         }
 
+        [Fact]
+        public void GivenNoManifestFileWhenCreatingNewManifestItShouldCreateInDirectFolder()
+        {
+            var toolManifest =
+                new ToolManifestFinder(
+                    new DirectoryPath(_testDirectoryRoot),
+                    _fileSystem,
+                    new FakeDangerousFileDetector());
+
+            FilePath createdManifest = toolManifest.FindFirst(createIfNotFound: true);
+
+            createdManifest.Value.Should().Be(Path.Combine(_testDirectoryRoot, "dotnet-tools.json"));
+            _fileSystem.File.Exists(Path.Combine(_testDirectoryRoot, "dotnet-tools.json")).Should().BeTrue();
+            _fileSystem.Directory.Exists(Path.Combine(_testDirectoryRoot, ".config")).Should().BeFalse("New manifests should not create .config directories");
+        }
+
         private string _jsonContent =
             @"{
    ""version"":1,