DI is not recognizing $config as an object?

So I am assuming you're defining the $config object outside of that anonymous function? Like so:

$config = whatever;

/** * Setting up the view component */ 
$di->set('view', function(){ 
    $view = new \Phalcon\Mvc\View(); 
    $view->setViewsDir($config->application->viewsDir); 
    return $view; 
});

If so, then yes, you're simply overlooking something. $config is not in scope within the anonymous function, so you need to do this:

$config = whatever;

/** * Setting up the view component */ 
$di->set('view', function() use ($config){ 
    $view = new \Phalcon\Mvc\View(); 
    $view->setViewsDir($config->application->viewsDir); 
    return $view; 
});

Note my addition of use ($config), which adds that variable into scope for the anonymous function. There is nothing that magically converts $config into a call to the config object stored in your DI, so you need to explicitly pass that into the anonymous function as I demonstrated.