Here is a screenshot below which shows I want to create a DAL2 MVC Module
But after clicking ok on blue screen it shows me this error below the system cannot find the path specified. (Exception from HRESULT: 0x80070003). The VS 2022 version is 17.11.1 and the DNN project Template version is 11.1
The problem lies in the Local Dev URL
you've got to specify the URL which you've hosted on the IIS mine was with www. so it should match exactly the same hosted on IIS. So it should be www.dnndev.com on Local Dev URL and this worked for me.