We have a setup project that currently adds Project Output\'s from different visual studio projects. We want to change the packaging system and use a folder with a bunch of
We had this same issue. You can NOT drag/drop.. But you can go to the contents you want in Windows Explorer, copy the items (which can include sub-folders), then return to VS Installer and paste these (e.g. the application folder).
Note. If you need to create custom folders (e.g. c:\html) you can also use this approach but you must create the custom folder first in the left pane (specifying the absolute path as the target), then again go to the left pane and paste.
This method works to package a set of folders but does NOT SYNC folders that may having varying contents! If the contents change between deployments you must re-copy/paste to get the installer file to contain everything!