On one project I have used sucesfully argument -XXLanguage:-ProperCheckAnnotationsTargetInTypeUsePositions
in kotlinOptions to disable "typeUsage" check on annotations. This project has regular build.gradle in Groovy. However when I have used exactly same approach on same version of Kotlin (1.6.0) in fresh project with Kotlin DSL gradle files (build.gradle.kts) it seems like this argument is ignored totally.
Summarizing:
Maybe someone has same issue? This is connected with Compatibility of android annotations with Kotlin 1.6.0
kotlinOptions {
jvmTarget = "1.8"
freeCompilerArgs = listOf("-XXLanguage:-ProperCheckAnnotationsTargetInTypeUsePositions")
}