I think it’s more the script that runs to extract the PICO-8 files expects the files to be in a specific directory; either reading it, and/or extracting it to a directory. You could potentially edit the script to direct it to your chosen directory. I’ll look into it on the weekend. Too tired to try during the week.
If you make the PICO-8 files via the normal directory, and then move it (which is what I guess you’ve done), it should be all good.
I’m not sure if it’s a mode problem here.
Also, in before someone asks “how do I use chmod?”
On a tangent. I mean. Hmm. It’s an extremely Grey area again, but since you’ve initially already included bios files, and sample rom files, really including a pre setup PICO-8 is pretty much the same? But that’s like saying, if you pick someone’s pocket, you might as well steal their car too. It’s still just as morally … grey. In a nutshell, basically don’t.