What needs to be done to use a local header files?

Using the arduino IDE I have no problem with local files simply include them like #include "config.h" and it adds them in fine. I can't seem to have the same luck with the cloud editor. I even gave in and asked the AI to create it and it did the same thing I do Had me create a header file named config and it shows at the top with a capital H in front of it and in files it has the .h appended. Added the #include "config.h" to the top of the main sketch like it suggested and in the config.h added
the code it suggested to add.

With the result the cloud editor says the file does not exist. Gave in and asked the AI what it saw and it too does not see the files and wants to create it for me.Waited a day to see if it was a refresh problem and cleared cookies but no luck. Since the local header files work fine in the Arduino IDE not sure what is wrong.

In your other post, you say, "It complains that the rotary.h does not exist"

Would you show the complete program and error?
Where are the local files in reference to the main program?

Importing: https://docs.arduino.cc/arduino-cloud/cloud-editor/import-your-sketchbook-and-libraries-to-the-web-editor/

Importing: https://support.arduino.cc/hc/en-us/articles/360011890519-Import-your-sketchbook-and-libraries-to-the-Cloud-Editor

Get it working in the non-cloud IDE then just click the upload to cloud button. I haven't tried that but it seems reasonable.

That's what is puzzling. The program builds fine using the Arduino IDE. So you would think archiving and sending it to the Cloud editor would work. Files are there but as far as the Cloud editor do not exist. It's something to do with local header files as anything else sent is fine. Even gave in and asked the AI how to create one just in case it was something I was doing wrong as far as using the Cloud editor and it followed the same format. And could not see the file it showed me how to create. Nor could the cloud editor.
I've already moved the project off here but was curious why what works with the IDE does not work with the Cloud editor..

...

Starting just after a successful IDE compile, describe the exact keystrokes and mouse clicks to accomplish the above.

Cloud Editor is picky about where files live. Usually the ''file doesn’t exist" error happens because the header isn’t in the same sketch folder, or the name doesn’t match exactly.

Quick checklist:

Make sure config.h is in the same project as your .ino file.
In Cloud Editor, all files for one sketch must be inside the same “Sketchbook → SketchName” folder.
Check the exact filename.
Cloud Editor sometimes shows Config.h or CONFIG.H even if the actual file is lowercase. The include must match exactly:
#include "config.h"
No extra hidden extensions.
Sometimes it creates config.h.txt without telling you. Rename/check the file properties.
Refresh the sketch, not just the page.
In the Cloud Editor sidebar, close and reopen the sketch this forces it to reload file metadata.
Avoid subfolders.
Cloud Editor does NOT automatically search subdirectories like the desktop IDE.