#Propper props showing up as errors

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shy pawn
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Hello, in the latest hammer++ update they integrated propper into the editor. After turning a basic brush into a prop for testing it turns out it shows up as an error in-game. When creating this prop I left all the propper defult settings and clicked "build + compile". I have checked the "Propper" box in editor

grave pier
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is the model in the correct location?

grave pier
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and did you set it up? use studiomdl