Thank you for using our services.
There seems to be some problem with how physical paths to your newly created websites are set in IIS. By default website physical paths are created in folder Websites as you have correctly noted that there is a folder with your project name there. I have tried to create several test projects through the Project Manager and they are all created C:\Program Files\telerik\Sitefinity3.6\WebSites
\, where they should be. Also the physical paths set to those sites in the IIS Manager point to the correct location. Can you try to point the physical path of your newly created website in the IIS Manager. To do this select the MeritCompany web app in IIS Manager. On the right in the Actions
panel select Basic Settings
and give the physical path like this: C:\Program Files (x86)\telerik\Sitefinity3.6 Community\WebSites\MeritCompany\
I hope this helps. If you have more questions feel free to contact us.
All the best,
the Telerik team