Android Studio – > Could not create task ':app:compileDebugKotlin'. > Could not create task ':app:dataBindingGenBaseClassesDebug'

I was getting following error while building the project while moving up from 7.x to 8.x,

Cannot use @TaskAction annotation on method DataBindingGenBaseClassesTask.writeBaseClasses() because interface org.gradle.api.tasks.incremental.IncrementalTaskInputs is not a valid parameter to an action method.

I had to go through following steps as I didn’t had downgrading option as in accepted answer. I was using Android Studio chipmunk which would let me select latest Gradle Version but not Android Gradle Plugin & Kotlin Gragle Plugin.

• If you are on AGP 7.2+ use ./gradlew -Pandroid.debug.obsoleteApi=true to get prominent warning for APIs which might fail in 8.

• Upgrade Android Studio which will give you access to latest AGP & KGP. I upgraded to Eel 2022.1.1.
  If you try to upgrade kotlin gradle plugin to latest with older Android Studio you’d get,

Kotlin version that is used for building with Gradle differs from the
one bundled into the IDE

• Set compileOptions & kotlinOptions to Java 11. Below 11 is not accepted.

• Update kotlin-gradle-plugin.

• Remove kotlin-android-extensions plugin if is in used.

• Add kotlin-parcelize plugin for accessing Parcelize class.

• Change kotlinx.android.parcel to kotlinx.parcelize.

• Remove jcenter.

• Replace deprecated onBackPressed() with

   onBackPressedDispatcher.addCallback(this, object : OnBackPressedCallback(true) {
       override fun handleOnBackPressed() {
           // your code
       }
   })
  

• Upgrade libraries in dependencies. Retrofit library was giving an issue while building.

Finally I could build the project. Here are the versions,

Also, these steps helped me to resolve the issue, yours might differ.