Building gradle app fails when com.google.firebase:firebase-bom is updated to 32.6.0

I'm trying to upgrade com.google.firebase:firebase-bom from version 29.0.0 to 32.6.0 and I ran into this error:

/Users/macuser/.gradle/caches/transforms-3/467bb9d3066a57ac5f94cf19b169a6ba/transformed/jetified-play-services-measurement-api-21.5.0-api.jar!/META-INF/java.com.google.android.gmscore.integ.client.measurement_api_measurement_api.kotlin_module: Module was compiled with an incompatible version of Kotlin. The binary version of its metadata is 1.9.0, expected version is 1.6.0.

Does this version have a specific gradle version required?

At the moment, my gradle version is 7.3.3 and kotlin dependencies versions are as below:

org.jetbrains.kotlin:kotlin-gradle-plugin:1.6.21
org.jetbrains.kotlin:kotlin-reflect:1.6.21

I've tried deleting gradle cache and even the .gradle folder itself but nothing seems to work.

What could be the issue and how may I solve this? Any input is appreciated.

Below project is configured with AGP version 8.2.2

1. Check project level build.gradle > kotlin version make it 1.9 from 1.6.

// Top-level build file where you can add configuration options common to all sub-projects/modules.
buildscript {
    repositories {
        google()
        mavenCentral()
    }
    dependencies {
        classpath 'com.android.tools.build:gradle:8.2.2' //updated gradle
        classpath "org.jetbrains.kotlin:kotlin-gradle-plugin:1.9.0" //updated kotlin version

        // NOTE: Do not place your application dependencies here; they belong
        // in the individual module build.gradle files
    }
}

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

2. App level build.gradle update java version

plugins {
    id 'com.android.application'
    id 'kotlin-android'
}

android {
    compileSdk 34

    defaultConfig {
        applicationId "com.test.test"
        minSdk 24
        targetSdk 34
        versionCode 1
        versionName "1.0"

        testInstrumentationRunner "androidx.test.runner.AndroidJUnitRunner"
    }

    buildTypes {
        release {
            minifyEnabled false
            proguardFiles getDefaultProguardFile('proguard-android-optimize.txt'), 'proguard-rules.pro'
        }
    }
    compileOptions {
        sourceCompatibility JavaVersion.VERSION_17
        targetCompatibility JavaVersion.VERSION_17
    }
    kotlinOptions {
        jvmTarget = JavaVersion.VERSION_17.toString()
    }
    buildFeatures {
        viewBinding true
    }

    namespace 'com.test.test'
}

dependencies {
    
     // ..... your other dependencies

}

3. Go to your project > gradle/wrapper/gradle-wrapper.properties

update gradle version

distributionBase=GRADLE_USER_HOME
distributionPath=wrapper/dists
distributionUrl=https\://services.gradle.org/distributions/gradle-8.2-bin.zip
validateDistributionUrl=true
zipStoreBase=GRADLE_USER_HOME
zipStorePath=wrapper/dists

Make desired changes if you want to upgrade for higher version.

And if you get any other error edit your question. Check this for more information

https://kotlinlang.org/docs/releases.html#release-details

AGP compatibility with Android Studio

Gradle plugin details - https://developer.android.com/build/releases/gradle-plugin#updating-gradle