Google Assistant Android Studio Plugin unable to recognize shortcuts.xml

I'm using Android Studio Chipmunk 2021.2.1 Patch 1. I followed this codelab to implement Google Assistant App Actions. But for some reason, it's giving me the following error, whenever I try to build the app or try to use Google Assistant Android Studio Plugin:-

There are no resources listed in your Android Manifest matching to shortcuts.xml or actions.xml.

Here is my Android manifest file:-

<?xml version="1.0" encoding="utf-8"?>
<manifest xmlns:android="http://schemas.android.com/apk/res/android"
    xmlns:tools="http://schemas.android.com/tools"
    package="com.devrel.android.fitactions">

    <!-- Needed permission to start the FitTrackingService in foreground mode -->
    <uses-permission android:name="android.permission.FOREGROUND_SERVICE" />

    <application
        android:name="com.devrel.android.fitactions.FitApp"
        android:allowBackup="true"
        android:icon="@mipmap/ic_launcher"
        android:label="@string/app_name"
        android:roundIcon="@mipmap/ic_launcher_round"
        android:supportsRtl="true"
        android:theme="@style/AppTheme"
        tools:ignore="GoogleAppIndexingWarning">
        <meta-data
            android:name="android.app.shortcuts"
            android:resource="@xml/shortcuts" />
        <activity
            android:name="com.devrel.android.fitactions.FitMainActivity"
            android:exported="true"
            android:label="@string/app_name"
            android:launchMode="singleTask"
            android:theme="@style/AppTheme.NoActionBar">

            <intent-filter>
                <action android:name="android.intent.action.MAIN" />

                <category android:name="android.intent.category.LAUNCHER" />
            </intent-filter>

            <intent-filter>
                <category android:name="android.intent.category.DEFAULT" />
            </intent-filter>

        </activity>

        <service
            android:name="com.devrel.android.fitactions.tracking.FitTrackingService"
            android:enabled="true"
            android:exported="true" />

    </application>

</manifest>

And here is my shortcuts.xml in res/xml folder:-

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

    <!-- Add Start Exercise intent parameter shortcuts -->
    <shortcut
        android:shortcutId="running"
        android:shortcutShortLabel="@string/activity_running">
        <capability-binding android:key="actions.intent.START_EXERCISE">
            <parameter-binding
                android:key="exercise.name"
                android:value="@array/runningSynonyms" />
        </capability-binding>
    </shortcut>

    <shortcut
        android:shortcutId="walking"
        android:shortcutShortLabel="@string/activity_walking">
        <capability-binding android:key="actions.intent.START_EXERCISE">
            <parameter-binding
                android:key="exercise.name"
                android:value="@array/walkingSynonyms" />
        </capability-binding>
    </shortcut>

    <shortcut
        android:shortcutId="cycling"
        android:shortcutShortLabel="@string/activity_cycling">
        <capability-binding android:key="actions.intent.START_EXERCISE">
            <parameter-binding
                android:key="exercise.name"
                android:value="@array/cyclingSynonyms" />
        </capability-binding>
    </shortcut>

    <!-- Add START_EXERCISE capability -->


    <!-- Add Stop Exercise intent parameter shortcuts -->


    <!-- Add STOP_EXERCISE capability-->
    <capability android:name="actions.intent.START_EXERCISE">
        <intent
            android:action="android.intent.action.VIEW"
            android:targetClass="com.devrel.android.fitactions.FitMainActivity"
            android:targetPackage="com.myapp.android.fitactions">
            <parameter
                android:name="exercise.name"
                android:key="exerciseType" />
        </intent>
    </capability>

</shortcuts>

I'm using MacOS Monterey with Apple M1 Pro chip.

I solved this by upgrading the Gradle plugin to the latest version (7.2.1).

In Android Studio, from Tools menu click AGP Upgrade Assistant and simply follows the instructions.