Whenever I add a new module using android studio, it automatically adds it to the include function in

settings.gradle

file. Now the issue is, even if I have a

settings.gradle.kts

file, android studio creates a settings.gradle and adds my dependency in there rather than in the

.kts

version. Is there a way to tell AS to add the dependency to the existing settings.gradle.kts file rather than create a new settings.gradle?

AS doesn’t work properly for gradle.kts (it’s even show warning about it in AS 3.5), so the only way is do not use features of AS that touch gradle configs

See https://youtrack.jetbrains.com/issue/KT-31767

Would it fix AS too? Because AS has own templates

I'm not sure. Left a comment in the issue.