Error: The apk for your currently selected variant (Unknown output) is not signed. Please specify a signing configuration for this variant (debug)

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This occurred to me too, this might happen because the default signing configuration is modified after upgrading to Gradle 7.0.0. You can fix this without downgrading the Gradle. To do this,

go to File menu > Project Structure.
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then go to Modules section
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then head to Default Config tab
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Scroll down to Signing Config then click dropdown
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select $signingConfigs.debug from the drop-down list
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Click APPLY then OK then Run your app again.

That SOLVED the issue for me. Hope it works for you too.

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