Rust ESP32-S3 build problem: could not compile `xtensa-lx-rt` (lib)

When compiling a Rust project for ESP32-S3 you may encounter the following error:

While Rust is very helpful with error messages, it’s quite hard to determine what is going wrong.

Basically this problem occurs when you’re building a project for ESP32-S3 which is using Xtensa target and the project is missing the following file: .cargo/config.toml