No, AllowedIPs should be set to your internal Wireguards IPrange
Here's an example of one of my client configs:
[Interface]
Address = 10.8.0.2/32
PrivateKey =
[Peer]
PublicKey =
PresharedKey =
Endpoint = 192.168.0.3:51820
AllowedIPs = 10.8.0.0/16
Just be careful to not mess up your subnet masks. For example my [Interface] Address ends with /32 because that only leaves 10.8.0.2
In the [Peer] Section i set it to /16 which will allow the client to connect to 10.8.x.x iirc
