What is the right way of using iMovie to favorite clips so that your Library will show all Favorites but videos are in their separate events?

I'm trying to become more organized with how I use iMovie and how I clip files.

I'm trying to understand, what the method of Favorites is, and how they are transferrable across Libraries.

I want to create a singular iMovie Library, about a singular theme. I want it to have multiple events, aptly named, and of those events, I would be adding video to each event, and dragging them onto the timeline. Then I'd select specific portions of the videos in the events, and do "Reveal in Project Media", and right-click on the yellowed up segment of the video, and go "Favorite".

But now my Favorited clip is in the "My Movie" project, not in the Event itself. So I don't understand.

Here's what I'm doing.

I start a new project, have some libraries open, drag a video to the project, and cut it so that I get the right segment, then Reveal in Project Media and then it is part of the My Movie.

Should I be dragging the converted files into an Event inside the Library, and then creating the Favorite? Can I take something from a project, and then make it into a Favorite in a Library Event?

Like, I'm just trying to understand the basic concepts of timekeeping / favorite-keeping, it feels like this is the most major thing holding me back from being able to do compilations of interview excerpts, for instance.

Thank you in advance for any help!