After trying a few configurations, it seems that the mp3 tags do matter. If you want to generate by genre then the structure also matters. It needs to be:
If by artist only then the structure can be more straight forward:
The artist and album doesn't seem to come from the folders but more so from the first 1-2 mp3 file tags (ordered by filename). The album will be pulled from the first album tag. The artist is retrieved from the first 2 artist tags where if the builder finds it to be different, it labels it various. Otherwise if they are the same, it will be the album name specified.
I don't think the builders can read certain tag versions so that's why it was labeling my artist and album as unknown. I tested this several times changing the tag attributes and folder structures and I'm fairly positive this is how the builders work. This is just my observation and how it works for me so if it works differently for you then it's all good. Just as long as it works. I hope this helps out others that are having difficulties.