Older Bible scholars disagreed about this too — here’s each side, in their own words.
Public-domain commentators, 1600s–1900s, in their own words — voices on both sides.
Read as reconcilable
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There can be little doubt that angelic beings are intended here, though some have thought that the stars literally are referred to … The time referred to is at the close of the creation of the earth, for the whole account relates to the formation of this world, and not of the stars.
Albert Barnes (d. 1870), Notes on the Bible, on Job 38:7.
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This must refer to some intelligent beings who existed before the creation of the visible heavens and earth … by the sons of God, and the morning stars, the angelic host is meant.
Adam Clarke (d. 1832), Commentary on the Bible, on Job 38:7.
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The context seems to suggest that by the stars are meant the angels entrusted with their guardianship, from whence Milton has borrowed his conceptions.
Charles Ellicott (d. 1905), Commentary for English Readers, on Job 38:7.
Read as a real contradiction
These were conservative commentators harmonizing the passage in their own way; the point here is only that they read the “morning stars” as literal stars already shining when the earth was founded — the reading that places the stars before the fourth day.
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They are actual stars … the fulness of light, in which the morning stars shone forth all together at the founding of the earth, may symbolize one grandly harmonious song of joy.
Keil & Delitzsch (Delitzsch d. 1890), Biblical Commentary on the Old Testament, on Job 38:7.
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The stars generally, or the actual stars visible on the morn of creation, are probably meant … Their priority to the earth is implied, since they witness its birth.
The Pulpit Commentary (1880s), on Job 38:7.
In the commentators’ own words