This error appears when I updated IDEA CE to 132.1045 version. AVD manager has no problem with this AVD. I tried to recreate AVD from scratch but no result, same problem. In SDK manager no updates.
If click on "Continue Anyway" app deploys normal.
This problem happens to me after SDK updates when I am using any device based directly on the default Device definitions.
Furthermore: any new virtual device created with the default device definitions (Nexus 7, Nexus S, etc) gives directly the same error.
My solution is to duplicate these definitions: