So to clarify, when you say your folders and text are “showing New Heading and Text”, do you mean you have selected the Default compile format, and then clicked the Assign Section Layouts button below the preview column, and assigned everything in the work to “New [Page] Heading and Text”? For one thing, if that is going to end up working, it’s not going to do what you want, unless you want each subsection of the chapter inserting a page break, even in between the chapter heading and the first section.
You probably only want that Layout for what you are using folders for, and something like the “Text Section” layout for the rest. Something to be keen on is clicking on the preview tiles themselves in the main compile overview. As they highlight the different areas of your outline, is what is being highlighted what you want for that type of layout?
Next though, we need to know what type of file you’re trying to create, via the dropdown at the very top of the compile window. Not everything even supports page breaks. And then once you have compiled it, what program are you using to open it? Not all programs support displaying page breaks (like Scrivener!).
If you use the default separators for folders (chapters and Acts) this will be a page break which is most likely what you want. I wrote an article on separators and compiling look below. I did include a lot of images to help understand the concepts.