Hi and thank you for your reply.
Please find all the necessary info in the attachments:
a) Output from command: "bitbake rg" in file rg.bb_compile_error <- rg is a recipe with the rust application
b) rg.bb <-recipe with the rust application
c) bblayers.conf
d) local.conf
d) meta-custom-layer.7z <-compressed layer where the rg.bb recipe resides

As a note, I just add that the error from the output is misleading because I do have pkg-config installed. Also, I am able to build and run that rust app on my host machine without any problems.

Once again thank you for your interest and I hope you'll be able to help me with that issue.