Multi module project dependency resolution error - Kotlin DSL

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Unable to resolve the dependency of child module, I am building a multi module Gradle Java project using Kotlin DSL. I have two modules under root directory - application, dao. The application module needs to use classes defined in dao module.

I defined the dependency on dao module in build.gradle.kts of application module using
implementation(project(":dao"))

I am defining beans of dao module using a config class and am trying to import it in application module, but the classes are not resolved in compile time. (SpringBoot application)

Please help me understand why is this dependency not getting resolved? Am I missing anything which is required in adding a module as dependency in another module?

Below are the respective files.
Root build.gradle.kts

buildscript {
	repositories {
		mavenCentral()
	}
}

plugins {
	id("java")
	id("idea")
	id("war")
	id("io.spring.dependency-management") version "1.0.9.RELEASE"
}

subprojects {
	group = "com.company"
	version = "0.0.1"

	repositories {
		mavenCentral()
	}

	apply() {
		plugin("java")
		plugin("idea")
		plugin("io.spring.dependency-management")
	}

	java.sourceCompatibility = org.gradle.api.JavaVersion.VERSION_11

	dependencies {
		implementation("io.jsonwebtoken:jjwt-api:0.10.7")
		implementation("io.jsonwebtoken:jjwt-impl:0.10.7")
		implementation("com.auth0:java-jwt:3.10.3")

		implementation(group= "org.mockito", name= "mockito-core", version= "3.1.0")

		implementation(group= "javax.inject", name= "javax.inject", version= "1")
		implementation(group= "org.springframework", name= "spring-context", version= "5.2.6.RELEASE")
		implementation(group= "org.springframework.security", name= "spring-security-core", version= "4.2.3.RELEASE")
		
		implementation(group= "org.apache.commons", name= "commons-lang3", version= "3.7")
		implementation(group="com.google.guava", name= "guava", version= "29.0-jre")
		implementation(group= "commons-io", name= "commons-io", version= "2.7")

		testImplementation("org.junit.jupiter:junit-jupiter-api:5.3.1")
		testRuntimeOnly("org.junit.jupiter:junit-jupiter-engine:5.3.1")
	}
}

tasks.getByName<Test>("test") {
	useJUnitPlatform()
}

settings.gradle.kts

rootProject.name = "test-project"
include(":dao",":application")

application module’s build.gradle.kts

buildscript {
	repositories {
		mavenCentral()
	}
}

plugins {
	id("org.springframework.boot") version "2.3.0.RELEASE"
}

dependencies {
	implementation(project(":dao"))
	
	implementation("org.springframework.boot:spring-boot-starter-actuator")
	implementation("org.springframework.boot:spring-boot-starter-web")

}

val jar by tasks.getting(Jar::class) {
	manifest {
		attributes["Main-Class"] = "com.company.MainApplication"
	}

	from(sourceSets.main.get().output)

	dependsOn(configurations.runtimeClasspath)
	from({
		configurations.runtimeClasspath.get().filter { it.name.endsWith("jar") }.map { zipTree(it) }
	})
}


task<Exec>("start"){
	dependsOn("build")
	group = "Execution"
	description = "Start the application post running build and using generated jar file."
	commandLine("java", "-jar", jar.archiveFile.get())
}

task<Exec>("startFast") {
	dependsOn(jar)
	group = "Execution"
	description = "Start the application using last generated jar file."
	commandLine("java", "-jar", jar.archiveFile.get())
}

dao module’s build.gradle.kts

plugins {
	java
}

version = "unspecified"

repositories {
	mavenCentral()
}

dependencies {}