@bocaj you’re doing everything right. Unfortunately, we made a tweak to the starter theme which caused some unanticipated errors like the one you’re seeing.
If you can simply move the contents of the /theme-name/theme/ folder into /theme-name/ (including style.css, functions.php and others) the problem will resolve itself and links/paths will behave as expected.
We tried to clean up the organization in a recent update. While it’s cleaner, it caused this problem. I’m in the process of rectifying this so it won’t lead to errors/questions in the future. Sorry for the confusion!