Since I've updated to Android Studio 3.5, in my unit tests Android Studio shows unresolved reference for all the dependencies. The project compiles and the unit test runs successfully but Android Studio shows everything in red.
I've tried to clean, delete build and .gradle folder, invalidate caches but it doesn't work.
Only workaround to fix this until issue 140375151 is resolved is this:
alt/options + Enter
Inspection "Unresolved reference, in wrong test scope"
Edit inspection profile setting
OK
The unresolved references should no longer show as unresolved.