How to create entity in the Widget code

Hello Experts, I have a requirement to create an entity in my widget code. i tried giving type=”entity” in the widget.xml file, but while importing it in my application I am getting error that for Pluggable widget I cannot use type=”entity”   I also refer the source code given in the github community and found out that they are able to use type=”entity” in there widget.xml. below is the screenshot for your reference Do anybody have Idea how come they are able to use it and we are not able to do so. Thank in advance.  
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