Data binding class not generated in latest studio 3.6

Today I have updated my android studio 3.5.3 to 3.6. Now, I am not able to generate any data binding class. Android studio it self generating data-binding-iml file.

Does any one faced such issue?

Gradle wrapper.properties:

distributionUrl=https\://services.gradle.org/distributions/gradle-5.4.1-all.zip

Project level gradle file:

dependencies {
        classpath 'com.android.tools.build:gradle:3.5.3'
}

App level gradle file:

apply plugin: 'com.android.application'
apply plugin: 'kotlin-android'
apply plugin: 'kotlin-android-extensions'
apply plugin: 'kotlin-kapt'
apply plugin: 'androidx.navigation.safeargs'
android {
 dataBinding {
        enabled = true
    }
    // Using Lambda Expressions
    compileOptions {
        sourceCompatibility JavaVersion.VERSION_1_8
        targetCompatibility JavaVersion.VERSION_1_8
    }

    kotlinOptions {
        jvmTarget = "1.8"
    }
}

gradle.properties:

kotlin.code.style=official
android.databinding.enableV2=true
kotlin.incremental=true
kapt.incremental.apt=true

Below is my Activity and XML files: Activity:

class ActivityMain : AppCompatActivity() {
    override fun onCreate(savedInstanceState: Bundle?) {
        super.onCreate(savedInstanceState)
        var binding = DataBindingUtil.setContentView<ActivityMainBinding>(this, R.layout.activity_main)
    }
}

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">

    <data>
        <import type="android.view.View" />
     <!--   <variable
            name="loading"
            type="Boolean" />-->
        <variable
            name="bottomMenu"
            type="Boolean" />
        <variable
            name="clickListener"
            type="com.ecom.side_menu.SideMenuClickHandler" />
    </data>
    <androidx.drawerlayout.widget.DrawerLayout
        android:id="@+id/drawer_layout"
        android:layout_width="match_parent"
        android:fitsSystemWindows="false"
        android:layout_height="match_parent">

        <androidx.constraintlayout.widget.ConstraintLayout
            android:id="@+id/container"
            android:layout_width="match_parent"
            android:layout_height="match_parent">

            <include
                android:id="@+id/layToolbar"
                layout="@layout/layout_toolbar"
                app:layout_constraintEnd_toEndOf="parent"
                app:layout_constraintStart_toStartOf="parent"
                app:layout_constraintTop_toTopOf="parent" />

            <androidx.fragment.app.FragmentContainerView
                android:id="@+id/splash_host"
                android:name="androidx.navigation.fragment.NavHostFragment"
                android:layout_width="0dp"
                android:layout_height="0dp"
                android:background="@android:color/white"
                app:defaultNavHost="true"
                app:layout_constraintBottom_toTopOf="@+id/bottomNavigationView"
                app:layout_constraintLeft_toLeftOf="parent"
                app:layout_constraintRight_toRightOf="parent"
                app:layout_constraintTop_toBottomOf="@+id/layToolbar"
                app:navGraph="@navigation/splash_graph" />

            <com.google.android.material.bottomnavigation.BottomNavigationView
                android:id="@+id/bottomNavigationView"
                android:layout_width="0dp"
                android:layout_height="wrap_content"
                android:layout_marginStart="0dp"
                android:layout_marginEnd="0dp"
                android:background="@color/colorPrimary"
                android:visibility="@{safeUnbox(bottomMenu) ? View.VISIBLE : View.GONE}"
                app:itemBackground="@color/colorPrimary"
                app:itemIconTint="@android:color/white"
                app:itemTextColor="@android:color/white"
                app:layout_constraintBottom_toBottomOf="parent"
                app:layout_constraintEnd_toEndOf="parent"
                app:layout_constraintStart_toStartOf="parent"
                app:menu="@menu/menu_navigation_dashboard" />


         <!--   <include
                android:id="@+id/progressLayoutId"
                layout="@layout/layout_progress"
                android:visibility="@{safeUnbox(loading) ? View.VISIBLE : View.GONE}"
                app:layout_constraintBottom_toBottomOf="parent"
                app:layout_constraintEnd_toEndOf="parent"
                app:layout_constraintStart_toStartOf="parent" />-->

        </androidx.constraintlayout.widget.ConstraintLayout>

        <com.google.android.material.navigation.NavigationView
            android:id="@+id/navigationView"
            android:layout_width="wrap_content"
            android:layout_height="match_parent"
            android:layout_gravity="start"
            android:background="@android:color/white"
            android:fitsSystemWindows="true"
            android:visibility="visible">
            <include
                android:id="@+id/customDrawerList"
                app:clickListener="@{clickListener}"
                layout="@layout/drawer_list" />
        </com.google.android.material.navigation.NavigationView>

    </androidx.drawerlayout.widget.DrawerLayout>

</layout>

Official solution:

Google has resolved this issue. After updating with new patch of android studio 3.6.2, I am able to create databinding class with multiple source set

This happened to me as well. The binding classes are actually generated. The project builds fine. Only Android Studio 3.6.1 (or underlying Gradle build system, I do not care) is buggy and cannot see these classes.

As an intermediate solution, I just hacked the source sets (please note that build variants in the fragment below are specific to my project, you need to rewrite it).

android {
    ...
    sourceSets {
        demoDebug {
            java.srcDirs += 'build/generated/data_binding_base_class_source_out/demoDebug/out'
        }
        fullDebug {
            java.srcDirs += 'build/generated/data_binding_base_class_source_out/fullDebug/out'
        }
        espressoDebug {
            java.srcDirs += 'build/generated/data_binding_base_class_source_out/espressoDebug/out'
        }
        demoRelease {
            java.srcDirs += 'build/generated/data_binding_base_class_source_out/demoRelease/out'
        }
        fullRelease {
            java.srcDirs += 'build/generated/data_binding_base_class_source_out/fullRelease/out'
        }
        espressoRelease {
            java.srcDirs += 'build/generated/data_binding_base_class_source_out/espressoRelease/out'
        }
    }
    ...
}

As pointed by Steve above: In the mean time, we have to patiently wait for Google to fix it...

EDIT

I have just realised it is MUCH more buggy than I expected, the layouts are broken too:

I hope Google will fix this mess soon...

EDIT 2

I have realized again that Android Studio 3.6 is even more buggy than described above.

The execution of existing Espresso tests is broken too.

I strongly discourage everyone from upgrading to Android Studio 3.6.

I the mean time, we will probably downgrade back to Android Studio 3.5.