I am trying
Simulate Parachain tutorial, in configure the test network settings, there is step to create a configuration file
config.toml. Can we create that file in any directory or should we need to include inside polkadot or parachain-template?
You can store this configuration file wherever you want, then when you run the zombienet program you can specify the route, for example:
./zombienet-linux -p native spawn ./your-dir/config.toml
As an example check this repository: Trappist where is has a folder zombientet with all the .toml configurations files, separate from the runtime files.