I CAN update the Gradle Version (not plugin) to a more recent version, but that doesn't update what I can select in the Android Gradle Plugin Version. The most current version I can select is 7.4.2.
What do I need to do to allow me to select a version of the Gradle Plugin more current than 7.4.2?
The project I'm working on requires something slight newer than 7.4.2, and I don't want to download Android Studio Flamingo because I'm still learning stuff about layouts and XML (not yet to JetPack compose).
Your Android Studio version is just too old to support any newer AGP versions.
As you can see from the compatibility matrix only AGP versions 3.2 to 7.4 are supported by Android Studio Electric Eel.
If you want to use a newer version, you have to update Android Studio (and please don't just update to Flamingo, directly update to the newest version. At the time of writing that is Narwhal Feature Drop | 2025.1.2 Patch 1). That shouldn't negatively affect what you are currently working on, XML layouts are still available there.
Not related, but I'm not sure if you intend to learn XML layouts first and then Compose. That doesn't make any sense. Compose replaces XML layouts, so learning them first is just a waste of time. Also see this other answer of mine: How NOT to create projects with Jetpack Compose using Android Studio