Hey ...this was my friends and I just a few weeks ago. The answer is depends ...
Currently, we use Valheim Plus and Epic Loot. All players have to have the mods but for Valheim Plus, the person who starts the server has control over the configurations to the files. For Epic Loot, everyone has to have the mod and configs matching. I would suggest that when whoever creates the files, create a share file and distribute copies to the group. Then place the files into the appropriate folders. Good Luck!