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What is the error exactly?
Your published plugin should have replaced the project dependency with a proper GAV coming from the build itself.

it's not published yet
consuming project importing the plugin via composite build complains
&gt;  Project with path ':entities' could not be found in project ':plugin'.

is it possible to test/debug before publishing?

Looking closer at your included build description, I wonder if you do not have a setup issue.  How is your plugin project getting access to utilities? Through a included build as well?

a plain `implementation(project(":entities"))` for the moment

shall I switch `entities` to a separate project and import it as an included build as well?

switching to a separate project (ie adding a `settings.gradle.kts` ) and importing as a composite build made it work