After updating my Android Studio to the latest version i.e. Electric Eel | 2022.1.1, I got "Gradle project sync failed" after creating a new project.

Error:

A problem occurred configuring root project 'BIAssignment'.
> Could not resolve all files for configuration ':classpath'.
   > Could not resolve com.android.tools.build:gradle:7.4.0.
     Required by:
         project : > com.android.application:com.android.application.gradle.plugin:7.4.0
         project : > com.android.library:com.android.library.gradle.plugin:7.4.0
      > No matching variant of com.android.tools.build:gradle:7.4.0 was found. The consumer was configured to find a runtime of a library compatible with Java 8, packaged as a jar, and its dependencies declared externally, as well as attribute 'org.gradle.plugin.api-version' with value '7.5' but:
          - Variant 'apiElements' capability com.android.tools.build:gradle:7.4.0 declares a library, packaged as a jar, and its dependencies declared externally:
              - Incompatible because this component declares an API of a component compatible with Java 11 and the consumer needed a runtime of a component compatible with Java 8
              - Other compatible attribute:
                  - Doesn't say anything about org.gradle.plugin.api-version (required '7.5')
          - Variant 'javadocElements' capability com.android.tools.build:gradle:7.4.0 declares a runtime of a component, and its dependencies declared externally:
              - Incompatible because this component declares documentation and the consumer needed a library
              - Other compatible attributes:
                  - Doesn't say anything about its target Java version (required compatibility with Java 8)
                  - Doesn't say anything about its elements (required them packaged as a jar)
                  - Doesn't say anything about org.gradle.plugin.api-version (required '7.5')
          - Variant 'runtimeElements' capability com.android.tools.build:gradle:7.4.0 declares a runtime of a library, packaged as a jar, and its dependencies declared externally:
              - Incompatible because this component declares a component compatible with Java 11 and the consumer needed a component compatible with Java 8
              - Other compatible attribute:
                  - Doesn't say anything about org.gradle.plugin.api-version (required '7.5')
          - Variant 'sourcesElements' capability com.android.tools.build:gradle:7.4.0 declares a runtime of a component, and its dependencies declared externally:
              - Incompatible because this component declares documentation and the consumer needed a library
              - Other compatible attributes:
                  - Doesn't say anything about its target Java version (required compatibility with Java 8)
                  - Doesn't say anything about its elements (required them packaged as a jar)
                  - Doesn't say anything about org.gradle.plugin.api-version (required '7.5')

I have already tried Invalidating Cache and changing Gradle version from Project Structure but neither of them worked. I also tried disabling Flutter plugin, but none of these methods work please help me solving this problem.

My current project structure:

build.gradle

plugins {
    id 'com.android.application' version '7.4.0' apply false
    id 'com.android.library' version '7.4.0' apply false
}

build.gradle

plugins {
    id 'com.android.application'
}

android {
    namespace 'com.biassignment'
    compileSdk 33

    defaultConfig {
        applicationId "com.biassignment"
        minSdk 24
        targetSdk 33
        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_1_8
        targetCompatibility JavaVersion.VERSION_1_8
    }
    buildFeatures {
        viewBinding true
    }
}

dependencies {
    implementation 'androidx.appcompat:appcompat:1.6.0'
    implementation 'com.google.android.material:material:1.7.0'
    implementation 'androidx.constraintlayout:constraintlayout:2.1.4'
    implementation 'androidx.navigation:navigation-fragment:2.5.3'
    implementation 'androidx.navigation:navigation-ui:2.5.3'
    testImplementation 'junit:junit:4.13.2'
    androidTestImplementation 'androidx.test.ext:junit:1.1.5'
    androidTestImplementation 'androidx.test.espresso:espresso-core:3.5.1'
}