Resolution for issue vyuldashev#48. Same occurs in Laravel 9. Not sure why not fixed already... original suggestion fixes the issue.

Harvey Dobson · Harvey Dobson · commit f159a7e1e7c8 · 2022-05-12T14:15:02.000+01:00
diff --git a/src/Console/SchemaFactoryMakeCommand.php b/src/Console/SchemaFactoryMakeCommand.php
@@ -35,7 +35,8 @@ protected function buildClass($name)
 
     protected function buildModel($output, $model)
     {
-        $model = Str::start($model, $this->laravel->getNamespace());
+        $namespace = app()::VERSION[0] >= 8 ? $this->laravel->getNamespace(). 'Models\\' : $this->laravel->getNamespace();
+        $model = Str::start($model, $namespace);
 
         if (! is_a($model, Model::class, true)) {
             throw new InvalidArgumentException('Invalid model');

Original file line number	Diff line number	Diff line change
`@@ -35,7 +35,8 @@ protected function buildClass($name)`
`35`	`35`
`36`	`36`	`protected function buildModel($output, $model)`
`37`	`37`	`{`
`38`		`- $model = Str::start($model, $this->laravel->getNamespace());`
	`38`	`+ $namespace = app()::VERSION[0] >= 8 ? $this->laravel->getNamespace(). 'Models\\' : $this->laravel->getNamespace();`
	`39`	`+ $model = Str::start($model, $namespace);`
`39`	`40`
`40`	`41`	`if (! is_a($model, Model::class, true)) {`
`41`	`42`	`throw new InvalidArgumentException('Invalid model');`