Weird problem while creating Gradle project in spring tool suite

I have below versions of gradle and java in my system

Java: java version "23.0.2" 2025-01-21
Gradle: Gradle 8.13

When I try to create a gradle project in STS..I see the project structure is weird. Because I observe an additional lib folder is getting creating along with the original project. See attached pictures, lib folder is getting created

Is it expected? Because Ideally everything should be in one folder right?

Please Check: