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to modularize my ktor server project all i have to do is create new gradle modules and reference their `module` extension function in the config.yaml file?

Ktor's modules are simply extension functions for the `Application` class. When referenced in the configuration file loaded by the server, these modules will be executed automatically during server startup.
So what do you mean by modularization?

By modularization i mean splitting my project into multiple gradle submodules