Created a new module but extension functions show error: Cannot access 'java.io.Serializable' which is a supertype of 'kotlin.String'

Created a new android project then I have added a new module to it. The idea is to separate all my network calls and serialization to a separate module.

module was created by right click on project > new > module > Java or Kotlin Library. This added a new module, but all the extensions functions that work on Strings show error:

Cannot access 'java.io.Serializable' which is a supertype of 'kotlin.String'. Check your module classpath for missing or conflicting dependencies

my new module build.gradle is:

plugins {
    id 'java-library'
    id 'kotlin'
    id 'org.jetbrains.kotlin.plugin.serialization' version '1.5.31'
}

java {
    sourceCompatibility = JavaVersion.VERSION_1_8
    targetCompatibility = JavaVersion.VERSION_1_8
}

dependencies {
    implementation("com.squareup.okhttp3:okhttp:5.0.0-alpha.2")
    implementation("org.jetbrains.kotlinx:kotlinx-serialization-json:1.3.0")
    implementation("com.squareup.okhttp3:logging-interceptor:4.9.2")
    testImplementation 'junit:junit:4.13.2'
}

and a single class, which has errors:

package com.example.lib

import okhttp3.OkHttpClient
import okhttp3.Request
import okhttp3.RequestBody.Companion.toRequestBody

class MyClass {
    private val client = OkHttpClient()

    fun makeRequest() {
        val randomVariable = "lowercase letters".uppercase()

        val request = Request.Builder()
            .get()
            .url("https://stackoverflow.com/")
            .build()

        val response = client.newCall(request).execute().body?.string()!!
    }
}

I have tried to invalidate cache, clean .gradle cache, reboot, used Java 8 and Java 11 for Gradle JDK but did not work...