Setting up a PowerBI Gatewat Data Source and choosing FILE or FOLDER

Yes - using a domain\username which has local admin on all servers.

We are actually trying to configure an Azure Logic App to connect to the internal fileshare and pick up files.

We have successfully configured an Azure "On-Premises Data Gateway" connection with our PowerBI Gateway server.
(PowerBI Gateway has 20+ data sources already setup for various SQL connection etc.. and works perfectly!)

We have also successfully configured the Azure Logic App to use the Azure "On-Premises Data Gateway" which as explained

above uses the PowerBI Gateway on premises.

But we get an error in the Logic App:

 {
"status": 400,
"message": "The requested action could not be completed. Check your request parameters to make sure the path '' exists on your file system.\r\nclientRequestId: 9df835e9-8e8a-4f6c-b332-dd87f0925b6a",
"source": "filesystem-ne.azconn-ne.p.azurewebsites.net"
}

At the moment, we think the problem is that we are not using the same domain user account that installed\setup the Power BI Gateway (on premises) to configure the Azure "On-Premises Data Gateway. 

Finally - if we choose the "Folder" option in the Power BI Gateway Data Source - will that monitor a particular folder for all files?
or do we need to use the "Files" option that you have shown in your screenshot?

Nathan