Why is this an issue?

settings.gradle.kts or settings.gradle are used to define general project properties; see the following sample file:

rootProject.name = "myProject"

include("foo", "bar")

In general it is not mandatory to define the settings.gradle.kts or settings.gradle, however it is hingly recommended because:

it improves performance, since Gradle won’t navigate up the filesystem directory tree looking for the settings file
it is a good practice to define project properties, like the rootProject.name

How to fix it

Simply add a settings.gradle.kts or settings.gradle file. For example with such content:

rootProject.name = "myProject"

include("module1", "module2")