Sorry, but you’re wrong here. I had the file in the correct location. Once you build your package, the SDK automatically creates the folder that you’re referring to along with the spd file, so yes, I do have that folder as well. The file must be here first: PackageSources > airportservices > icao folder as I described above. As I stated above, I generated the spd file using the SDK. That creates the folder within the built package.
I resolved this issue with some trial & error. What I learned is that when it comes to services.xml, the plane you spawn in with overrides the size of your parking space. In my case, I had SMALL parking, but I spawned in with a Cessna. Since I spawned in a plane that is larger than the SMALL parking space, the sim looks for the logic from the MEDIUM space. I ended up updating my file to reference both SMALL & MEDIUM parking to remedy this.