[SOLVED] Starting in Kotlin 2.0, the Compose Compiler Gradle plugin is required when compose is enabled

Below are the snippets of my build.gradle (app as well as project) files, along with the libs.versions.toml (version catalog) Since I am using Kotlin version 2.1.0, I have enabled compose compiler and have also followed the instructions as mentioned under Compose Compiler Gradle plugin. But, I am still getting the error 'Compose Compiler Gradle Plugin is required' while trying to build

A problem occurred configuring project ':app'.
> com.android.builder.errors.EvalIssueException: Starting in Kotlin 2.0, the Compose Compiler Gradle plugin is required
  when compose is enabled. See the following link for more information:
  https://d.android.com/r/studio-ui/compose-compiler

* 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.
Deprecated Gradle features were used in this build, making it incompatible with Gradle 9.0.
You can use '--warning-mode all' to show the individual deprecation warnings and determine if they come from your own scripts or plugins.
For more on this, please refer to https://docs.gradle.org/8.10.2/userguide/command_line_interface.html#sec:command_line_warnings in the Gradle documentation.
BUILD FAILED in 231ms

build.gradle (:app)

plugins {
  id 'com.android.application'
  id 'kotlin-android'
  id 'com.google.gms.google-services'
  alias(libs.plugins.compose.compiler) apply false
}

android {
  compileSdk 35

  defaultConfig {...}

  buildTypes {...}

  compileOptions {
    sourceCompatibility JavaVersion.VERSION_1.8
    targetCompatibility JavaVersion.VERSION_1.8
  }

  kotlinOptions {
    jvmTarget = '1.8'
  }

  buildFeatures {
    compose true
  }

  composeOptions {
    kotlinCompilerExtensionVersion '1.5.1'
  }

  packaging {...}

}

dependencies {
  implementation libs.androidx.core.ktx
  implementation libs.androidx.appcompat
  implementation libs.material
  implementation libs.androidx.constraintlayout
  implementation libs.androidx.lifecycle.runtime.ktx
  implementation libs.androidx.activity.compose
  implementation platform(libs.androidx.compose.bom)
  implementation libs.androidx.compose.foundation
  implementation libs.androidx.ui
  implementation libs.androidx.ui.graphics
  implementation libs.androidx.ui.tooling.preview
  implementation libs.androidx.material3
  implementation libs.junit
  implementation libs.androidx.junit
  implementation libs.androidx.espresso.core

  //firebase google authentication
  implementation platform(libs.firebase.bom)
  implementation libs.firebase.auth
  implementation libs.play.services.auth

  androidTestImplementation platform(libs.androidx.compose.bom)
  androidTestImplementation libs.androidx.ui.test.junit4
  debugImplementation libs.androidx.ui.tooling
  debugImplementation libs.androidx.ui.test.manifest     

}

build.gradle (project)

buildScript {
  ext.kotlin_version = '2.1.0'

  repositories {
    google()
    mavenCentral()
  }

  dependencies {
    classpath 'com.android.tools.build:gradle:8.8.1'
    classpath "org.jetbrains.kotlin:kotlin-gradle-plugin:$kotlin_version"

    classpath 'com.google.gms.google-services:4.4.2'
  }

}

tasks.register('clean', Delete) {
  delete rootProject.buildDir
}

libs.versions.toml (version catalog)

[versions]  
activityCompose = "1.10.0"  
appcompat = "1.7.0"  
composeBom = "2025.02.00"  
constraintlayout = "2.2.0"  
coreKtx = "1.15.0"  
espressoCore = "3.6.1"  
firebaseBom = "33.9.0"  
junit = "4.13.2"  
junitVersion = "1.2.1"  
kotlin = "2.1.0"  
lifecycleRuntimeKtx = "2.8.7"  
material = "1.12.0"  
playServicesAuth = "21.3.0"  
[libraries]  
androidx-activity-compose = { module = "androidx.activity:activity-compose", version.ref = "activityCompose" }
androidx-appcompat = { module = "androidx.aappcompat:appcompat", version.ref = "appcompat" }
androidx-compose-bom = { module = "androidx.compose:compose-bom", version.ref = "composeBom" }
androidx-compose-foundation = { module = "androidx.compose.foundation:foundation" }
androidx-constraintlayout = { module = "androidx.constraintlayout:constraintlayout", version.ref = "constraintlayout" }
androidx-core-ktx = { module = "androidx.core:core-ktx", version.ref = "coreKtx" }
androidx-espresso-core = { module = "androidx.test.espresso:espresso-core", version.ref = "espressoCore" }
androidx-junit = { module = "androidx.test.ext:junit", version.ref = "junitVersion" }
androidx-lifecycle-runtime-ktx = { module = "androidx.lifecycle:lifecycle-runtime-ktx", version.ref = "lifecycleRuntimeKtx" }
androidx-material3 = { module = "androidx.compose.material3:material3" }
androidx-ui = { module = "androidx.compose.ui:ui" }
androidx-ui-graphics = { module = "androidx.compose.ui:ui-graphics" }
androidx-ui-test-junit4 = { module = "androidx.compose.ui:ui-test-junit4" }
androidx-ui-test-manifest = { module = "androidx.compose.ui:ui-test-manifest" }
androidx-ui-tooling = { module = "androidx.compose.ui:ui-tooling" }
androidx-ui-tooling-preview = { module = "androidx.compose.ui:ui-tooling-preview" }
firebase-auth = { module = "com.google.firebase:firebase-auth" }
firebase-bom = { module = "com.google.firebase:firebase-bom", version.ref = "firebaseBom" }
material = { module = "com.google.android.material:material", version.ref = "material" }
play-services-auth = { module = "com.google.android.gms:play-services-auth", version.ref = "playServicesAuth" }

[plugins]
org-jetbrains-kotlin-android = { id = "org.jetbrains.kotlin.android", version.ref = "kotlin" }
compose-compiler = { id = "org.jetbrains.kotlin.plugin.compose", version.ref = "kotlin" }