Android Studio is creating debug packages - android-studio

I have created an Android project. Somehow Android Studio is create weird packages, I wonder why?
I tried to delete them as well, but they recreated themselves.
Android Studio Version:
Android Studio Flamingo | 2022.2.1 Canary 11

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Android studio says
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Is it the normal behaviour for Android Studio to lose all settings after an upgrade via Jetbrains Toolbox?

I'm currently using Android Studio Chipmunk 2021.2.1 Patch 2 212.5712.43.2112.8815526, and would like to upgrade to the latest Android Studio Dolphin 2021.3.1.
Jetbrains Toolbox is providing an option for this upgrade.
However, when the new version gets installed and I open Android Studio, all the settings that I had before are lost, and it looks like a fresh install.
Plugins, themes, are all lost, and it seems like I need to re-install them.
Thankfully I'm able to rollback to the previous version for now.
In other Jetbrains IDEs, there's usually a prompt to migrate over from a previous installation. This isn't coming up with Android Studio.
Is this the normal behaviour for Android Studio? And if not, is there something I'm missing?
More details:
Current Android Studio version: Android Studio Chipmunk 2021.2.1 Patch 2 212.5712.43.2112.8815526
Current Jetbrains Toolbox App version: 1.26.0.13072
OS: macOS Monterey Version 12.5.1 (21G83)

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There will be an option as you can see in the below picture:

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