After downloading and working with plainkit it seems that Markdown is not properly parsed for my text files. In order to troubleshoot I looked for /site/config/config.php but it seems to be missing.
Is the documentation out of date and config.php moved elsewhere?
Do I need to create a config.php file from scratch?
The Plainkit is, well, plain. Since the config.php file is not required, it is not there. You can add it yourself, though. Create a /config folder in /site and inside a config.php.
What exactly is the problem? You don’t need any config settings to parse Markdown, unless you want to use Markdown Extra features.