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Put it into a separate file and not inside your precompiled script plugin

You mean a separate file in the project I'm using the imported class in? That somehow defeats the purpose of centralizing logic in convention plugins, no?

No, in the project where you also have your precompiled script plugins.

And that separate file should then have a *.kt extension, not *.gradle.kts?

Or you could also write it in Java, or any other JVM language you want