Circular dependency between the following tasks - Alternative code?

I'm having troubles in my project within Intellij Idea. Ive added a picture at the end of this to clarify what I need help with better just in case.

It seems that this line in build.gradle allows for one part of my project to be imported correctly:

    dependencies {
    implementation project(':cachetool')
  }

However, when I run the application, I get the following from having that line:

    Circular dependency between the following tasks:
:cachetool:classes
\--- :cachetool:compileJava
     +--- :cachetool:compileKotlin
     |    \--- :cachetool:jar
     |         +--- :cachetool:classes (*)
     |         +--- :cachetool:compileKotlin (*)
     |         \--- :cachetool:inspectClassesForKotlinIC
     |              +--- :cachetool:classes (*)
     |              \--- :cachetool:compileKotlin (*)
     \--- :cachetool:jar (*)

How may I fix this? Without the dependency line, I can't import part of my project. Here is my full build.gradle:

    plugins {
  id 'java'
  id 'org.jetbrains.kotlin.jvm' version '1.6.10'
}

repositories {
  mavenCentral()
  mavenLocal()
  jcenter()
  maven { url "https://repo.maven.apache.org/maven2" }
}

sourceSets {
  main {
    java {
      srcDirs = ['src/main/java', 'cachetool']
    }
    resources {
      srcDirs = ['src/main/resources']
    }
  }
}

allprojects {
  group = 'scape-editor'
  version = '2.0.0'
}

wrapper {
  gradleVersion = '7.5'
}

subprojects {
  apply plugin: 'java'
  apply plugin: 'kotlin'

  sourceCompatibility = 1.8
  targetCompatibility = 1.8

  repositories {
    mavenCentral()
    mavenLocal()
    maven { url "https://repo.maven.apache.org/maven2" }
  }

  dependencies {
    implementation group: 'junit', name: 'junit', version: '4.12'
    testImplementation 'junit:junit:4.11'
    testImplementation "org.jetbrains.kotlin:kotlin-test-junit:1.6.10"
  }

  dependencies {
    implementation project(':cachetool')
  }
}

And here is my settings.gradle:

  rootProject.name = 'scape-editor'

include ':fs'
include ':gui'
include ':io'
include ':util'
include ':plugin'
include ':cachetool'

project(':fs').projectDir = "$rootDir/fs" as File
project(':gui').projectDir = "$rootDir/gui" as File
project(':io').projectDir = "$rootDir/io" as File
project(':util').projectDir = "$rootDir/util" as File
project(':plugin').projectDir = "$rootDir/plugin" as File
project(':cachetool').projectDir = "$rootDir/cachetool" as File

Any alternatives to what I'm doing? Thanks! =)

Picture for clarification below:

You have put this code:

dependencies {
    implementation project(':cachetool')
}

inside the subprojects closure. That's going to attempt to import the cachetool project in every subproject, including cachetool. See the circularity?

Items like this should only be included in the specific build.gradle files located inside the folders for the specific subproject(s) which require such a dependency.