Thanks to the posting below I solved my problem as follows: I first updated my .gitignore file:
/bin/ /Libs/ /.settings/ /.classpath /.svn/ Reports/ settings*
Ran “git rm -r --cached settings” from the command line **This removed the cached files that were causing the folder to not be removed/ignored Ran “Commit and Push” from Katalon Studio UI Result: ‘settings’ folder was deleted from remote repository