It appears that you don't have NodeJs installed and setup correctly

As I select “Record Mobile” > Android Devices I am getting below warning,

I have installed the nodejs properly

And I am unable to launch the app

Any leads please ?

In the last image it seems that you are trying to start the application with the application ID but have application file selected. Under the “Start with” section under the “Device Name” open the dropdown for Application File and change the selection to Application ID. There might still be other issues but that is at least why you are seeing the error that KS is Unable to find the specified application.

Thanks Kreno. I resolved the issue! And for my main issue, I uninstalled every tool (appium, nodejs) by deleting the folder all together and reinstall all the tools.
I removed all content from .zshrc file and replace with below content

export PATH=/usr/local/bin:/usr/bin:/bin:/usr/sbin:/sbin

And the rest of the content like JAVA_HOME, ANDROID_HOME environment variables I added to .bash_profile and Katalon launched the app without any issues and warnings!