Simple Log4j2 application does not logging to file. log4j xml say "Element File is not allowed here"

Question

I have create a simple application that write lines to log using IntelliJ

Below is my log4j2.xml file:

<?xml version="1.0" encoding="UTF-8"?>
<Configuration xmlns="http://logging.apache.org/log4j/2.0/config" packages="com.test.log4j">
    <Properties>
        <Property name="logPath">./Log4j2Example/logs</Property>
    </Properties>
    <Appenders>
        <!-- File Appender -->
        <File name="FILE" fileName="${logPath}/logfile.log" append="true">
            <PatternLayout pattern="%-5p | %d{yyyy-MM-dd HH:mm:ss} | [%t] %C{2} (%F:%L) - %m%n" />
        </File>
        <!-- Console Appender -->
        <Console name="STDOUT" target="SYSTEM_OUT">
            <PatternLayout pattern="%-5p | %d{yyyy-MM-dd HH:mm:ss} | [%t] %C{2} (%F:%L) - %m%n" />
        </Console>
    </Appenders>
    <Loggers>
        <Logger name="com.test" level="debug" />
        <Root level="info">
            <AppenderRef ref="STDOUT" />
            <AppenderRef ref="FILE" />
        </Root>
    </Loggers>
</Configuration>

My Main class is as follow:

package com.test.log4j;

import org.apache.logging.log4j.LogManager;
import org.apache.logging.log4j.Logger;
import org.apache.logging.log4j.core.appender.RollingFileAppender;

public class MainTest {

    private static final Logger LOG = LogManager.getLogger(MainTest.class);

    public static void main(String[] args){

        //private final static Logger LOG = LogManager.getLogger(MainTest.class);
        System.out.println("Hello World"); // This printed out in console

        LOG.info("This Will Be Printed On Info xxx");
        LOG.info("This Will Be Printed On Info yyy");

    }
}

I'm also curious why in the intelliJ file editor it say "Element File is not allowed here" for log4j2.xml when I hover mouse over "File" element:

What is the IDE trying to tell when it say "Element xx is not allowed here"? I thoughts this is some intelliJ misbehavior so I've tried restart IDE and restart the machine, but it does not seems to fix it.

How can I get this to write the log file?

Edit:

log4j2.xml is placed in "C:\Git\POC\TestLog4j\src\main\resources"

I'm not using gradle or maven to build. I downloaded the log4j 2.17.1 (core and api) and placed it in "C:\Git\POC\TestLog4j\lib" I've added lib path in the [project Structure -> Modules -> dependencies].