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Rather than re-describing the nitty-gritty details of the issue and the thread in the forum, I'm just going to add a reference to the forum thread.
The thread has a sample app which demonstrates the issue.
The tl;dr; of this issue:
- In Xcode, creating folders in the project creates a logical but not disk separation of content, such as storyboards.
- Apple's localization tools appear to require the flat file structure Xcode creates
- Doing this in XS, where creating folders creates on-disk folders requires manually adding links, which is a second step per storyboard.
So it turns out that this is a instance of a number of items that are only processed when in the top level root of a project.
The following stack overflow post applies, which the one change of IPhoneResourcePrefix to MonoMacResourcePrefix