I am working through chapter 4, generated scaffolding as instructed, but the StoreManagerController.cs was created inside the /Models folder and not in the /Controllers folder. My version of the Visual Studio Express 2013 for Web Update 3, it also has three (and not two as described) initial controllers with additions of ManageController. It feels like an error on the Microsoft part, should I move StoreManagerController to /Controllers manually?

The controller will be created in whichever folder you initiate scaffolding from, so if you right clicked the Models folder when you created the controller, that's where it goes.

The good news is that it doesn't matter from an execution point of view. Controllers can be anywhere in your codebase; the folder doesn't matter. If you want to drag and drop it into the Controllers folder and change the namespace to keep thing neat you can, but it's not necessary.