You can manage files and folders using either the buttons above the file window (which appears when you select a file or folder) or clicking the three dots to the right of the publish icon at the same row and then select an option from the drop down.

Using option buttons

Select a file or folder by clicking on it's row but beside it's name (if you click directly at the file or folder name it will open).

View the file. You can afterwards also select to download it directly.
Manage access: Edit permissions for the file or folder. See available options below.
Download file or folder to your computer.
Move your file or folder to another location in the Files area.
Delete your selected file or folder.

Warning!

If you delete a file, make sure you are not using it in any of your modules since it will be erased from the course.

file options 1

Using the "three dots menu"

Click at the three dots to the far right on the same row as the file or folder name. Here are the same choices as described above plus an extra option "share to Commons". This is a shortcut if you want to share this specific file in Canvas own sharing service.

file options 2

Permissions for files and folders

You can access these options with the option button described earlier or by clicking the publish icon to the right of the file or folder name.

Publish: A files or folder is visible for the students in both Files and Modules.
Unpublished: A file is hidden for the students in both Files and Modules.
Only available to students with a link: A file is hidden for the student in Files BUT can be visible in a Module or with a direct link.
Schedule Student availability: You can decide a time and date for a file or folder to be visible. It affects both Files and Modules.

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The connection between Files and files in a Module

When you add a file from your computer directly into one of your modules and then click publish, the file itself also changes automatically to the same state in Files (the module actually points to the file in course Files section, like a shortcut). This also applies to the unpublished state, when you unpublish a file in your modules it will also be unpublished in Files. So to be clear - a change of a files' state in a module overrides the files status in Files. If a file is displayed both in Files and in a module the modules published/unpublished state has priority. BUT with one exception. A published file inside an unpublished folder in Files won't be visible or downloadable for the students! A folder must always be published or in the state not visible for in student Files.

The default setting when you upload a file or folder is Published. All files and folders with this state are visible when your students go to the Files menu item, if you have enabled this. Even if you're note using them in a module.

Tip!

By creating an unpublished folder and uploading to it your files will not automatically be available when the upload is complete. Published files in an unpublished folder are still treated as unpublished. After the upload you can move the files as you like to get the setup/structure you are looking for.