Does a WP Multisite using Pro-Sites need to be installed in the root hosting folder?

I have multisite enabled on my Wordpress install that is installed in a subdirectory on my Go Daddy hosting. I'm not sure if that might be the reason for the errors but I've updated my wp-config and my htaccess (in the subdirectory, not the root folder although i tried changing that also).

So whats going on is that I'm able to create a subsite through the network admin dashboard and view the site (although its all text, no theme is applied to it), but if I try to login or go to the subsite dashboard i get a 500 internal server error. I've tried searching for the different htaccess and wp-config settings but still keep coming up with the internal server error.

The default "My Website" thats installed with the prosite plugin is visible, has the default theme applied and I am able to view it's dashboard.