A VM or physical server (or AWS instance) is the correct answer.

FOG wraps itself so tightly into the OS, it really should be an appliance. But since we are all volunteers and FOG is totally open source and nobody who works on fog actually has any money or time to do anything else besides what we’ve been doing - we just have a really elaborate installation script that we work hard to support.

I was able to confirm the issue of the sub directories not being created and after making the proposed suggestions the installer did indeed create the pxelinux.cfg and i386-efi folders. This issue was present on both Ubuntu and Fedora.

I’m marking this as solved.