I have the shp from my city and I created a layer with points in my city through an Excel sheet with X and Y coordinates. Both layers are in WGS_1984_UTM_Zone_21S but do not overlap. The only difference is the extent. Those are different yet I changed the extent from my points layer using the city's layer as reference. even so they do not overlap. I recently started using ArcGIS so not an expert here.
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1Welcome to GIS SE. As a new user, please take the [Tour]. This seems like a variant of our most frequent Question (ArcGIS flavor): Assigning a coordinate system does not mean the data is actually in that coordinate system. Try loading a standard basemap, and see which of your data files is actually in the right place (or, if neither is, though the Excel coords seem to be more vulnerable here). If you [Edit] the Question to contain the city name and coordinate values, others might be able to help, though probably as a comment, not as an Answer. – Vince Nov 05 '23 at 20:38