I had this same issue, and fixed it by modifying my project’s .iml file:
From:
<content url="file://$MODULE_DIR$">
<sourceFolder url="file://$MODULE_DIR$/src/wrong/entry/here" isTestSource="false" />
<sourceFolder url="file://$MODULE_DIR$/test" isTestSource="true" />
<excludeFolder url="file://$MODULE_DIR$/target" />
</content>
To:
<content url="file://$MODULE_DIR$">
<sourceFolder url="file://$MODULE_DIR$/src" isTestSource="false" />
<sourceFolder url="file://$MODULE_DIR$/test" isTestSource="true" />
<excludeFolder url="file://$MODULE_DIR$/target" />
</content>
Somehow a package folder became specified as the root source directory when this project was imported.