Adding Packages to Firmware built from Source

I am having some difficulties regarding building firmware from OpenWrt source. The firmware gets built successfully but the packages I add do not get built in the firmware but they just get compiled in a nearby directory and you have to copy them manually to router and install them manually through opkg. Is there a way to install selected packages within the firmware so they take less space than installing otherwise, just as we can build a firmware from Image Builder?

Also while doing make menuconfig, you can either mark the packages as M or *. What is the difference between this? Thanks

  • — Installed in the ROM
    M — Just in the packages directory
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