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Currently, I couldn't able to find a way to change the project email notification settings in Agile Project.
Is the functionality not there or is there any other way to get it done?
For example in other projects, we can do by https://confluence.atlassian.com/adminjiracloud/configuring-email-notifications-776636790.html
It is not there. This type of projects is called next-gen projects. They have limited functionality. You should choose another template for a new project to have the ability to edit the project notification scheme.