Error and invisible models


I’m new to garry’s mod and these forums so I’m looking for any kind soul that can help me.
I’ve followed steps from regarding addition of custom models.

The problem is that instead of the icon in the spawn menu I have ERROR in red and when I spawn the given model I can only hear that it’s fallen, also I am able to grab it with physi gun, but it’s completely invisible.

Also I’ve noticed a settings folder whenever I downloaded model packs.
Should I put these .txt files into garrysmod>garrysmod>settings>spawnlist or add folder named models and put them there.

Thank you in advance.