WIX copying files harvested by heat, but does not create cab file - wix

Question

Fairly new to Wix. I have a working msi, but instead of a cab file next to the msi file, I am just getting a folder. I have spent several days trying to figure out why it is not putting the files in a cab file but I am completely at a loss.
The msi file performs exactly as I expect, but distributing the msi alongside a folder is less desirable than just the msi.
<?xml version="1.0"?>
<Wix xmlns="http://schemas.microsoft.com/wix/2006/wi">
<Product Id="*" Name="[Name]" Language="1033" Manufacturer="[Manufacturer]" Version="2.0.30"
UpgradeCode="af66ae21-61e4-4926-954d-ee89acf95ab3">
<Package InstallerVersion="200"/>
<MajorUpgrade DowngradeErrorMessage="A newer version of [Name] is already installed." />
<MediaTemplate/>
<Feature Id="ProductFeature" Title="[Title]" Level="1">
<ComponentRef Id="ApplicationShortcut" />
<ComponentRef Id="ApplicationShortcutDesktop" />
<ComponentGroupRef Id="WebApp" />
<ComponentGroupRef Id="ControlApp" />
</Feature>
</Product>
<Fragment>
<Directory Id="TARGETDIR" Name="SourceDir">
<Directory Id="ProgramFiles64Folder">
<Directory Id="ManufacturerName" Name="[Name]">
<Directory Id="INSTALLLOCATION" Name="[Name]" />
</Directory>
</Directory>
<Directory Id="ProgramMenuFolder">
<Directory Id="ApplicationProgramsFolder" Name="[Name]"/>
<Directory Id="DesktopFolder" Name="Desktop"></Directory>
</Directory>
</Directory>
</Fragment>
<Fragment>
<DirectoryRef Id="ApplicationProgramsFolder">
<Component Id="ApplicationShortcut" Guid="844b584d-6d5f-4825-9541-c7caf74892fb">
<Shortcut Id="ApplicationStartMenuShortcut"
Name="[Name]"
Description="[Name]"
Target="[INSTALLLOCATION]MyApp.exe"
WorkingDirectory="INSTALLLOCATION" />
<RemoveFolder Id="RemoveApplicationProgramsFolder" Directory="ApplicationProgramsFolder" On="uninstall" />
<RegistryValue Root="HKCU" Key="Software\[Name]" Name="installed" Type="integer" Value="1" KeyPath="yes" />
</Component>
</DirectoryRef>
<DirectoryRef Id="DesktopFolder">
<Component Id="ApplicationShortcutDesktop" Guid="629d0ac6-8c63-4309-af33-975925584d1f">
<Shortcut Id="ApplicationDesktopShortcut"
Name="[Name]"
Description="[Name]"
Target="[INSTALLLOCATION]MyApp.exe"
WorkingDirectory="INSTALLLOCATION" />
<RemoveFolder Id="RemoveDesktopFolder" Directory="DesktopFolder" On="uninstall" />
<RegistryValue Root="HKCU" Key="Software\[Name]" Name="installed" Type="integer" Value="1" KeyPath="yes" />
</Component>
</DirectoryRef>
</Fragment>
</Wix>

Answer 1

Set the Package/#Compressed attribute to yes.