After Kotlin 1.6 and Android Studio update, databinding shows errors but app compiles and runs fine

Question

My android studio version is

Arctic Fox | 2020.3.1 Patch 3
Build #AI-203.7717.56.2031.7784292, built on October 1, 2021

After updating IDE and kotlin to 1.6, I opened a project I was working on and Android Stidio marked data binding fields as red, showing the following error:

In text:

Cannot access 'androidx.databinding.Observable' which is a supertype of 
'com.cioccarellia.wordbucket.databinding.ActivityMainBinding'. 
Check your module classpath for missing or conflicting dependencies

The weird thing is that everything compiles and the app works just fine, these errors are just in the IDE, and they pop up every time I access views through data binding.

I haven't changed my dependencies since updating android studio. Anyone else has the same problem / solution for this situation?

The Main Activity xml:

<?xml version="1.0" encoding="utf-8"?>
<layout xmlns:android="http://schemas.android.com/apk/res/android"
    xmlns:app="http://schemas.android.com/apk/res-auto"
    xmlns:tools="http://schemas.android.com/tools">

    <data>

    </data>

    <androidx.coordinatorlayout.widget.CoordinatorLayout
        android:id="@+id/coordinator_layout"
        android:layout_width="match_parent"
        android:layout_height="match_parent"
        android:fitsSystemWindows="true"
        tools:context="com.cioccarellia.wordbucket.activity.MainActivity">

        ...

    </androidx.coordinatorlayout.widget.CoordinatorLayout>
</layout>

General build.gradle:

buildscript {
    ext {
        kotlin_version = "1.6.0"
    }

    repositories {
        google()
        mavenCentral()
        gradlePluginPortal()
        maven { url 'https://jitpack.io' }
    }

    dependencies {
        classpath "com.android.tools.build:gradle:7.0.3"
        classpath "org.jetbrains.kotlin:kotlin-gradle-plugin:$kotlin_version"
        classpath 'com.google.gms:google-services:4.3.10'
        classpath "com.google.dagger:hilt-android-gradle-plugin:2.40.3"
        classpath "androidx.navigation:navigation-safe-args-gradle-plugin:2.3.5"
        classpath 'com.google.firebase:firebase-crashlytics-gradle:2.8.1'
        classpath "com.github.ben-manes:gradle-versions-plugin:0.39.0"
    }
}

task clean(type: Delete) {
    delete rootProject.buildDir

Application build.gradle:

plugins {
    id "com.android.application"
    id "kotlin-android"
    id "kotlin-kapt"
    id "dagger.hilt.android.plugin"

    id "com.google.gms.google-services"
    id "androidx.navigation.safeargs.kotlin"
    id "com.github.ben-manes.versions"
    id "kotlin-parcelize"
    id "com.google.firebase.crashlytics"
}

android {
    compileSdk 31

    defaultConfig {
        applicationId "com.cioccarellia.wordbucket"
        minSdk 23
        targetSdk 31

        versionCode 1
        versionName "1.0.0"

        testInstrumentationRunner "androidx.test.runner.AndroidJUnitRunner"
        vectorDrawables.useSupportLibrary true
    }

    buildTypes {
        debug {
            versionNameSuffix ".dev"
        }

        release {
            debuggable false

            // Enables code shrinking, obfuscation, and optimization
            minifyEnabled true

            // Enables resource shrinking, which is performed by the
            // Android Gradle plugin.
            shrinkResources true

            // Includes the default ProGuard rules files that are packaged with
            // the Android Gradle plugin. To learn more, go to the section about
            // R8 configuration files.
            proguardFiles getDefaultProguardFile("proguard-android-optimize.txt"), "proguard-rules.pro"
        }
    }

    compileOptions {
        sourceCompatibility JavaVersion.VERSION_1_8
        targetCompatibility JavaVersion.VERSION_1_8
    }

    kotlinOptions {
        jvmTarget = "1.8"
    }

    buildFeatures {
        dataBinding true
    }

    sourceSets {
        main.res.srcDirs = [
                "src/main/res",
                "src/main/res-public"
        ]

        android.sourceSets.all {
            java.srcDir("src/$name/kotlin")
        }
    }

    lintOptions {
        // if set to true (default), stops the build if errors are found.
        abortOnError false
        // if true, only report errors.
        ignoreWarnings false
    }
}

dependencies {
    // AndroidX
    implementation "androidx.core:core-ktx:1.7.0"
    implementation "androidx.appcompat:appcompat:1.4.0"
    implementation "androidx.constraintlayout:constraintlayout:2.1.2"
    implementation "com.google.android.material:material:1.6.0-alpha01"
    implementation "androidx.legacy:legacy-support-v4:1.0.0"

    // Lifecycle
    def lifecycle_version = "2.4.0"
    implementation "androidx.lifecycle:lifecycle-livedata-ktx:$lifecycle_version"
    implementation "androidx.lifecycle:lifecycle-viewmodel-ktx:$lifecycle_version"
    implementation "androidx.lifecycle:lifecycle-runtime-ktx:$lifecycle_version"

    // Navigation
    implementation "androidx.navigation:navigation-fragment-ktx:2.3.5"
    implementation "androidx.navigation:navigation-ui-ktx:2.3.5"


    // Coroutines
    implementation "org.jetbrains.kotlinx:kotlinx-coroutines-android:1.5.2"



    // DI -> Hilt
    implementation "com.google.dagger:hilt-android:2.40.3"
    kapt "com.google.dagger:hilt-compiler:2.40.3"



    // Import the Firebase BoM
    implementation platform("com.google.firebase:firebase-bom:28.4.2")

    // When using the BoM, you don"t specify versions in Firebase library dependencies
    implementation "com.google.firebase:firebase-crashlytics-ktx"
    implementation "com.google.firebase:firebase-analytics-ktx"
    implementation "com.google.firebase:firebase-auth-ktx"
    implementation "com.google.firebase:firebase-firestore-ktx"


    // LeakCanary
    debugImplementation "com.squareup.leakcanary:leakcanary-android:2.7"


    // Logging
    implementation "com.jakewharton.timber:timber:5.0.1"


    // Styles
    implementation 'com.airbnb.android:paris:2.0.1'
    kapt 'com.airbnb.android:paris-processor:2.0.1'


    // JUnit Default Dependencies
    testImplementation "junit:junit:4.13.2"
    androidTestImplementation "androidx.test.ext:junit:1.1.3"
    androidTestImplementation "androidx.test.espresso:espresso-core:3.4.0"
}

Answer 1

Updating android studio fixed the issue