Hi,
Mostly the checked-out project might not have required Java/Local Service Development compatible natures/builders, hence first you need to add VCS project nature to the packages that are not created in the local Integration & then you can try ‘Move Project to IS Package’ option.
To do this, right-click the package in the Package Explorer view and select Configure> Convert to Local Service Development Project . This also adds the Java project nature to the package.
Thanks,
Prashant
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