Is the 'Hosted' folder in the REST services directory of a hosting server in ArcGIS Enterprise created during installation and thereafter hidden from clients such as ArcMap or ArcGIS Pro? I've been looking at how Portal/Enterprise works when copying data to server during publishing versus adding data as items. The "itemized" data goes to the Hosted folder which I see on the server and the REST URL, and in ArcGIS Server Manager, but i can't see it when publishing from Pro. All I see is the root and a "GP Services" folders. I've run into issues with folders before when they weren't created through ArcGIS Server Manager, and wanted to make sure this is working as intended since I didn't configure this myself.
If the Hosted folder isn't present when you publish a hosted service, it'll be created so no worries if it's not there.