Quick question on the Mod Organiser

I'm using the Morrowind 2019 Thastus Guide from the sidebar and I have a question about the Mod Organiser that I want to clear up before moving on.

The guide states:

Extract it so that the Mod Organizer 2 (Archive) folder is inside your Morrowind installation folder.

Then, go ahead and run Mod Organizer.exe. It should pop up asking you about a couple things. You'll want to choose a "PORTABLE" install (unless you're much more familiar with MO2 and know what you're doing) and when it asks you about which game you want to manage, navigate to the Steam/steamapps/common/Morrowind folder.

So now I have steamapps > common > Morrowind > Mod Organizer 2 (Archive) but inside that MO2Archive folder there's a subfolder called "Mods" which is where the the MO is extracting files to from the mods I install (using the 'install from archive' feature). So for example if I install the texture fix then inside that "mods" folder I have a folder called "Texture Fix v2.0", and in that: Screenshots, meta.ini, the .esm file and the readme.txt.

Which clearly isn't right since they need to go in the Data Files folder of the main Morrowind directory.

Have I missed some step here? Nothing I can see in the Thastus guide or the FAQ on the Nexus mentions the issue. Thanks.