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