build fails with `Unsu

[scarf005]

Description

every single line of kotlin is marked red, and build fails despite setting up jvm target and java home in .vscode/settings.json

{
  "kotlin.compiler.jvm.target": "1.8",
  "kotlin.externalSources.autoConvertToKotlin": true,
  "kotlin.externalSources.useKlsScheme": true,
  "kotlin.java.home": "~/.asdf/installs/java/openjdk-17.0.1/"
}

Extension version

v0.2.26

Additional context

Output/kotlin:

FAILURE: Build failed with an exception.

* What went wrong:
Could not open init generic class cache for initialization script '/tmp/classpath9018207520662079098.gradle' (/home/scarf/.gradle/caches/7.3.3/scripts/55tbigth0u5ob87qt4h1tj3co).
> BUG! exception in phase 'semantic analysis' in source unit '_BuildScript_' Unsupported class file major version 63

* Try:
> Run with --stacktrace option to get the stack trace.
> Run with --info or --debug option to get more log output.
> Run with --scan to get full insights.

* Get more help at https://help.gradle.org