robots.txt error / Search page blocked by robots.txt instead of using "no index"

Site URL: https://daoethicalgifts.com/search

I recently included site search for our website. Apparently, Squarespace sets this type of page to "no index" per default by putting a block in the robots.txt. (Link to description in Squarespace help section)

Now, Google Search Console tells me that this is the wrong way to do it:

"If you do want to block this page from Google Search, robots.txt is not the correct mechanism to avoid being indexed. To avoid being indexed, remove the robots.txt block and use 'noindex'"

I am worried about the Squarespace default settings having a negative impact on our ranking. (How) can I manually change the settings? Or is this nothing to worry about?

Any recommendations or experience values are much appreciated!

Robots.txt file sits within your website’s directory and is the second file bots read when they crawl your website. It offers some instructions for bots, like Google’s bot, as to which files they should and should not view.  

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Devops Services Company | Mobile Application Company India

Thanks @MarkOrion for taking the time to answer! I know what robots.txt does technically.

I was rather trying to understand, if using robots.txt was the right way to avoid the Squarespace site search page from being indexed?

Google Search Console seems to suggest a different approach.

I have the exact same issue. Did you find a way to make the Google Search Console happy? I would love to know! Thanks.

I was just using ubersuggest and saw the same issue and would REALLY LIKE squarespace to make a change as it affects ranking! Wish I knew which sqsp admin to tag here. Someone please do this?

@kathomalley would you have any ideas? 🙏🙂