[IntelliJ] Uncaught Exception java.lang.IllegalStateException: There is no ProgressIndicator or Job in this thread, the current job is not cancellable.

IntelliJ build version: 2026.1.2 IU-261.24374.151
OS: Mac OS X
JDK: JetBrains s.r.o. 25.0.2
Plugin version: 3.97.6-2026.1
Additional Info: None
Parent component:

com.intellij.openapi.wm.impl.IdeRootPane[,0,0,2560x1440,invalid,layout=com.intellij.openapi.wm.impl.IdeRootPane$CustomHeaderRootLayout,alignmentX=0.0,alignmentY=0.0,border=,flags=449,maximumSize=,minimumSize=,preferredSize=]

Error message:

IdeaLoggingEvent[message=null, throwable=java.lang.IllegalStateException: There is no ProgressIndicator or Job in this thread, the current job is not cancellable.
	at com.intellij.openapi.progress.CoroutinesKt.runBlockingCancellable$lambda$0(coroutines.kt:153)
	at com.microsoft.azure.toolkit.intellij.legacy.function.runner.core.IntellijGradleFunctionProject.packageJar(IntellijGradleFunctionProject.java:92)
	at com.microsoft.azure.toolkit.intellij.legacy.function.runner.core.FunctionUtils.prepareStagingFolder(FunctionUtils.java:257)
	at com.microsoft.azure.toolkit.intellij.legacy.function.runner.localrun.FunctionRunState.prepareStagingFolder(FunctionRunState.java:351)
	at com.microsoft.azure.toolkit.intellij.legacy.function.runner.localrun.FunctionRunState.executeSteps(FunctionRunState.java:153)
	at com.microsoft.azure.toolkit.intellij.legacy.function.runner.lo

Start with IntellijGradleFunctionProject.packageJar, then trace the callers in FunctionUtils.prepareStagingFolder and FunctionRunState.prepareStagingFolder and executeSteps. Reproduce the local function run in IntelliJ using the versions listed, and inspect how the packaging path reaches the reported cancellability exception. Done means the reported exception no longer occurs during this flow, with relevant tests or verification added if the project provides them.