My file structure is:
dist
css
style.css
index.html
js
bundle.js
src
css
style.css
index.html
js
main.js
node_modules
webpack.con
When using webpack-dev-server, it builds all files internally and does not spit them out into your output path. Running webpack alone, without the dev server, does the actual compilation to disk. The dev server does everything in memory which speeds up re-compilation by a lot.
To fix your hot reload issue, set the content base to your source directory and enable inline-mode
Like so:
webpack-dev-server --content-base src --hot --inline