Hot reload is broken in 2 ways in latest stable Ktor release:
• embeddedServer does not work at all with hot reload
• staticResources result in 404 after reload, both in embeddedServer and EngineMain
Finding out that these things did not work sent me on a nice investigation. I thought it was my project settings, but it happens in the default project from the project generator even.
https://youtrack.jetbrains.com/issue/KTOR-8821/Hot-reload-broken-in-Ktor-3.2.3-in-2-ways