Flutter doctor cmdline-tools component is missing

Installing Flutter environment on your machine can be sometime frustrating. After installing Android Studio and Flutter, you run flutter doctor and you end up with output like below.

C:\Users\bitnb>flutter doctor
Doctor summary (to see all details, run flutter doctor -v):
[√] Flutter (Channel stable, 2.10.4, on Microsoft Windows [Version 10.0.19044.1586], locale en-US)
[!] Android toolchain - develop for Android devices (Android SDK version 32.1.0-rc1)
    X cmdline-tools component is missing
      Run `path/to/sdkmanager --install "cmdline-tools;latest"`
      See https://developer.android.com/studio/command-line for more details.
    X Android license status unknown.
      Run `flutter doctor --android-licenses` to accept the SDK licenses.
      See https://flutter.dev/docs/get-started/install/windows#android-setup for more details.
[√] Chrome - develop for the web
[√] Visual Studio - develop for Windows (Visual Studio Build Tools 2019 16.11.8)
[√] Android Studio (version 2021.1)
[√] Connected device (3 available)
[√] HTTP Host Availability

The line cmdline-tools component is missing sometime becomes tricky to resolve. There are lot of suggestions out there that provides steps to install command line tools from Sdk Manager. If you are one of the unlucky ones, these suggestions do not work. This does not mean that command line tools are not installed. When all options do not seem to work, add ANDROID_HOME environment variable on your Windows machine. Set the path of this variable to location where Android SDK is installed on your machine. E.g. in my machine, I have installed Android SDK at C:\Development\Android\Sdk, so I point ANDROID_HOME environment variable to this folder. This has helped me at times when all else has failed.