Flutter looking AndroidManifest.xml from wrong path

All of sudden Flutter started to look AndroidManifest.xml from flutter_app/android/AndroidManifest.xml path instead of
android/app/src/main/AndoirManifest.xml where it is located

I saw that there has been an update regarding to the directory strructure back in 2017. I am running the latest Flutter version so seriously puzzled by this.

Any ideas about the cause / Fix?