Latest public IDEA release can’t work with Kotlin DSL if K2 is enabled

Symptoms

Intellij IDEA versions >= 2025.1.2 and < 2025.2 cannot import the packages from TeamCity dependencies, leading to the projects not compiling in the IDE.

Cause

Kotlin DSL / Teamcity: Red code in .teamcity/settings.kts file describes this bug.

Resolution

You can update to a later version of the IDEA, or roll back to 2025.1.1 or earlier.