How do I add file group?(Xcode16.1)

In your image, does not show the Group, check you are starting from the project file:

Here is how you can add a file group in Xcode 16.1:

1. Launch Xcode on your Mac, ensuring that your project is open.
2. Navigate to the Project Navigator. Click on the Project Navigator icon (the top-left icon resembling a folder) to view your project’s file structure.
3. Right-click or Control-click in the desired location within the Project Navigator, where you want to add the new file group (e.g., under your project’s root or a specific target).
4. Select “New Group” from the contextual menu.
5. Enter a name for your new file group and press Enter.

Note: File groups in Xcode are logical organization structures that do not physically relocate the files on your disk. They assist you in maintaining an organized and efficient file structure for your project.

Albert Pascual
  Worldwide Developer Relations.

Note: File groups in Xcode are logical organization structures that do not physically relocate the files on your disk.

This doesn't seem to be the case. When I select "New Group" I get a physical folder. Add files to that group, moves them to that folder.