Gradle 6 -> 7: does not exist

Hi all.

I am working on the update from Gradle 6 to Gradle 7. One of the issues I have encountered is:

> Could not create service of type BuildTreeActionExecutor using method LauncherServices$ToolingBuildTreeScopeServices.createActionExecutor() as there is a problem with parameter #1 of type List<BuildActionRunner>.
    > Could not create service of type BuildLifecycleAwareVirtualFileSystem using GradleUserHomeServices.createVirtualFileSystem().
        > is set to a directory that doesn't exist

This error message is quite clear and the directory that is referenced truly does not exist. However, while Gradle 6 creates the directory (as it is a subdirectory of a writable directory), Gradle 7 exits with this error.

Is this change by intention in Gradle 7?