@Grzegorz Gajewski My project is a Kotlin Multiplatform app. With Narwhal, JetBrains introduced a new plugin for Multiplatform development. There is some edge case that it seems to choke on. Others don't seem to experience it, but for my project, use of this plugin results in this error.
It is being tracked here:
https://youtrack.jetbrains.com/issue/KMT-1299
For now, I just disabled the new Kotlin Multiplatform plugin and can continue using Narwhal and the development experience is similar to Meerkat.
JetBrains has not yet updated status. 22 days ago, they simply said "Thank you! We'll investigate."
If you have the Multiplatform plugin enabled, try disabling. If that works for you, add your confirmed findings to that issue linked above for additional evidence.