That is one way of deploying but you also need to import the custom xmls by executing import command in iiq console. You will see sp.init-custom.xml in WEB-INF/config which imports all the custom xmls
If you have less number of xmls that has to be imported in different env then you can do it from eclipse ssd but mostly not recommended for higher environment.
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Once build how we deploy the solution? Is that we need to copy all files and folders under build/extract to respective environment webapps?
That is one way of deploying but you also need to import the custom xmls by executing import command in iiq console. You will see sp.init-custom.xml in WEB-INF/config which imports all the custom xmls
If you have less number of xmls that has to be imported in different env then you can do it from eclipse ssd but mostly not recommended for higher environment.