When we are using setup-kind in latest version we get warning about "add-path" being deprecated.

Apparently you are using core.addPath method which also uses it.

Add Path was deprecated in https://github.blog/changelog/2020-10-01-github-actions-deprecating-set-env-and-add-path-commands/ and will be removed soon, so I think you need to change the mechanism to the new mechanism:

The path should be added to the ${GITHUB_PATH} file instead as described in https://docs.github.com/en/free-pro-team@latest/actions/reference/workflow-commands-for-github-actions#adding-a-system-path :

echo "{path}" >> $GITHUB_PATH