I'll echo what others have said, I think putting a SQLDelight database layer in its own Gradle module is a great approach and maybe should even be a recommended general approach. We recently refactored a project to do this many times across multiple modules in the same codebase. Very happy we did it. No issues with the tooling using this approach.
The biggest benefit for us is isolating the generated code from other parts of the codebase (
since the visibility can't be configured). We find it also makes our codebase easier to navigate. 🍻