Change file system source of truth

[ishaan1013]

To-do before this issue: #14

The file system management right now is very awkward, since the source folder in the backend is not the source of truth (it should be).

Operations like creating a file through the UI works properly. But a touch or mkdir in the terminal will not reflect changes.

After initially getting files from Cloudflare, we need to use the local file system as the source of truth.