If you see the php files in folders it might mean you haven't configured your server to run php code. Can you run simpliest php script like this?
This is by design. The "public" directory is the entry point into your application, you either need to specify it in your URL for development purposes, or for production - set it as the DocumentRoot, or inside a VirtualHost (Apache). For security purposes, anything below the public directory should not be accessible through your web server.
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