I have figured out the solution for my issue:
Press ‘Window Logo’ key
Type ‘cmd’
Right click on ‘run as admin’
-Uninstall appium: npm uninstall -g appium
-Install a known working appium version: npm install -g appium@12.1.1
-Manually removed the ‘C:\Users\username.katalon\tools\android_sdk’ folder
**Katalon will reinstall the Android SDK when ‘Project > Settings > Desired Capabilities > Mobile > Android’ link is opened from within Katalon.
-Removed all Desired Capabilities