UiPath Acivity Creator does not generate the Desgin Directory and Files in Visual Studio 2022

I’m using the Ui Path Activity Creator in Visual Studio to create custom acivities. I have the extentions and the required version of .NET installed( .NET 4.6.1). However, when I create the project, I am getting this error, which does not create the Design Directory and the corresponding files, breaking the project. Here are the screenshots for reference.

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I get the same error. Here is the topic I opened Activity Creator error - a problem was encountered creating the sub project - Visual Studio

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