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If you do those lines in a precompiled script plugin, then

apply false

is useless, it is actually ignored and the plugin is applied. There is an issue that this should instead error out instead of just ignoring it. It also does not make sense, as

apply false

would be for adding the plugin to the script classpath, but when working on a precompiled script plugin, you add the plugin to the classpath by depending on it in the build script of the build that builds the plugin.

If it's not being pulled from

buildSrc

then would it get pulled in via a composite build? This is happening in the root build.gralde of a composite build, so Kotlin is being added to the classpath before this line somewhere, I assumed it was

buildSrc

since that's what was recently changed, so I believed it was being added by the Kotlin DSL in that script plugin.

Whether

buildSrc

or from a composite build does not change much in that regard. If the project you depend on has a dependency (other than

compileOnly

or similar) it will be on the classpath of the consumer, yes.

Sorry to clarify it's not in the consumption of the composite project it's failing, but in the composite project itself:

├─buildSrc
│  └─build.gradle.kts (uses kotlin DSL)
├─myCompositeProject
|  └─build.gradle.kts (failing to apply kotlin plugin due to it already being in classpath)
├─build.gradle.kts

But still, if

myCompositeProject/build.gradle.kts

has a dependency on the Kotlin plugin so that your precompiled script plugin can use it and you apply it in the plugin with version, it is wrong. And

apply false

is wrong in that case anyway.

It's not being applied for the script plugin, it's being applied for subprojects of

myCompositeProject

, outside of the DSL

buildSrc

does nothing with Kotlin.

Can you provide an MCVE, so that we don't talk about different things?

I'll try, I've been having issues reproducing the issue in anything but the publish task for some reason.