ModuleNotFoundError: No module named 'app' on new Django installation - python-3.x

Question

I am trying to set up a simple Django==4.0.6 dev environment on my Ubuntu 20.04. I'm creating a project folder, create and activate a venv first. Then I'm installing Dajngo using pip. I'm then creating a new project in the very same directory and then for testing this out, run the usual python manage.py command. Here's a quick list of commands I am using:
mkdir project && cd project
python3 -m venv venv
source venv/bin/activate
pip install django==4.0.6
django-admin startproject major .
python manage.py migrate
But I'm getting the following error:
Traceback (most recent call last):
File "/project/venv/lib/python3.8/site-packages/django/core/management/base.py", line 414, in run_from_argv
self.execute(*args, **cmd_options)
File "/project/venv/lib/python3.8/site-packages/django/core/management/base.py", line 460, in execute
output = self.handle(*args, **options)
File "/project/venv/lib/python3.8/site-packages/django/core/management/base.py", line 95, in wrapped
saved_locale = translation.get_language()
File "/project/venv/lib/python3.8/site-packages/django/utils/translation/__init__.py", line 210, in get_language
return _trans.get_language()
File "/project/venv/lib/python3.8/site-packages/django/utils/translation/__init__.py", line 65, in __getattr__
if settings.USE_I18N:
File "/project/venv/lib/python3.8/site-packages/django/conf/__init__.py", line 87, in __getattr__
self._setup(name)
File "/project/venv/lib/python3.8/site-packages/django/conf/__init__.py", line 74, in _setup
self._wrapped = Settings(settings_module)
File "/project/venv/lib/python3.8/site-packages/django/conf/__init__.py", line 183, in __init__
mod = importlib.import_module(self.SETTINGS_MODULE)
File "/usr/lib/python3.8/importlib/__init__.py", line 127, in import_module
return _bootstrap._gcd_import(name[level:], package, level)
File "<frozen importlib._bootstrap>", line 1014, in _gcd_import
File "<frozen importlib._bootstrap>", line 991, in _find_and_load
File "<frozen importlib._bootstrap>", line 961, in _find_and_load_unlocked
File "<frozen importlib._bootstrap>", line 219, in _call_with_frames_removed
File "<frozen importlib._bootstrap>", line 1014, in _gcd_import
File "<frozen importlib._bootstrap>", line 991, in _find_and_load
File "<frozen importlib._bootstrap>", line 961, in _find_and_load_unlocked
File "<frozen importlib._bootstrap>", line 219, in _call_with_frames_removed
File "<frozen importlib._bootstrap>", line 1014, in _gcd_import
File "<frozen importlib._bootstrap>", line 991, in _find_and_load
File "<frozen importlib._bootstrap>", line 973, in _find_and_load_unlocked
ModuleNotFoundError: No module named 'app'
And further down, the rest of the error reads:
During handling of the above exception, another exception occurred:
Traceback (most recent call last):
File "manage.py", line 22, in <module>
main()
File "manage.py", line 18, in main
execute_from_command_line(sys.argv)
File "/project/venv/lib/python3.8/site-packages/django/core/management/__init__.py", line 446, in execute_from_command_line
utility.execute()
File "/project/venv/lib/python3.8/site-packages/django/core/management/__init__.py", line 440, in execute
self.fetch_command(subcommand).run_from_argv(self.argv)
File "/project/venv/lib/python3.8/site-packages/django/core/management/base.py", line 427, in run_from_argv
connections.close_all()
File "/project/venv/lib/python3.8/site-packages/django/db/utils.py", line 212, in close_all
for alias in self:
File "/project/venv/lib/python3.8/site-packages/django/utils/connection.py", line 73, in __iter__
return iter(self.settings)
File "/project/venv/lib/python3.8/site-packages/django/utils/functional.py", line 49, in __get__
res = instance.__dict__[self.name] = self.func(instance)
File "/project/venv/lib/python3.8/site-packages/django/utils/connection.py", line 45, in settings
self._settings = self.configure_settings(self._settings)
File "/project/venv/lib/python3.8/site-packages/django/db/utils.py", line 148, in configure_settings
databases = super().configure_settings(databases)
File "/project/venv/lib/python3.8/site-packages/django/utils/connection.py", line 50, in configure_settings
settings = getattr(django_settings, self.settings_name)
File "/project/venv/lib/python3.8/site-packages/django/conf/__init__.py", line 87, in __getattr__
self._setup(name)
File "/project/venv/lib/python3.8/site-packages/django/conf/__init__.py", line 74, in _setup
self._wrapped = Settings(settings_module)
File "/project/venv/lib/python3.8/site-packages/django/conf/__init__.py", line 183, in __init__
mod = importlib.import_module(self.SETTINGS_MODULE)
File "/usr/lib/python3.8/importlib/__init__.py", line 127, in import_module
return _bootstrap._gcd_import(name[level:], package, level)
File "<frozen importlib._bootstrap>", line 1014, in _gcd_import
File "<frozen importlib._bootstrap>", line 991, in _find_and_load
File "<frozen importlib._bootstrap>", line 961, in _find_and_load_unlocked
File "<frozen importlib._bootstrap>", line 219, in _call_with_frames_removed
File "<frozen importlib._bootstrap>", line 1014, in _gcd_import
File "<frozen importlib._bootstrap>", line 991, in _find_and_load
File "<frozen importlib._bootstrap>", line 961, in _find_and_load_unlocked
File "<frozen importlib._bootstrap>", line 219, in _call_with_frames_removed
File "<frozen importlib._bootstrap>", line 1014, in _gcd_import
File "<frozen importlib._bootstrap>", line 991, in _find_and_load
File "<frozen importlib._bootstrap>", line 973, in _find_and_load_unlocked
ModuleNotFoundError: No module named 'app'
I wasn't able to find a similar case where someone got the same error using a plain new installation in a virtual environment.
I haven't modified any files in the installation, fresh installation only. I was wondering if this has to do anything with my non-env Python. But I couldn't figure out what it is following the traceback.
Update:
I have tested this on every other machine and it works fine as it is a simple installation process for any Django project.

Answer 1

Is your $DJANGO_SETTINGS_MODULE environment variable set to something with app in it by any chance?
Related documentation: https://docs.djangoproject.com/en/4.0/topics/settings/#designating-the-settings
To fix, unset that environment variable.

Answer 2

if you created folder 'app' manually and there don't exists _ _ init _ _.py - you receive those Error.