I am working on uploading the .java files and zipping them and uploading them to scan by creating sandbox but having issues. The static scan is not working in the pipeline as it returns "Exiting Veracode Upload and Scan Task: App not in state where new builds are allowed". I logged in to the console and saw this message Module Selection Required not sure what it means. Please guide at the earliest.

You should be packaging the jar/ear/war/etc and not the source for java. See more here https://docs.veracode.com/r/compilation_java