Dynamic Color Preview not working in Android Studio

I am working on an Android Project but I am struggling with the dynamic color preivew in the Android Studio.

Here is my Composable function and it’s preview.

CODE

@Preview(wallpaper = Wallpapers.RED_DOMINATED_EXAMPLE)
@Composable
private fun TestPreview() {
    ClockTheme {
        Surface(
            modifier = Modifier.wrapContentSize(),
            color = MaterialTheme.colorScheme.background
        ) {
            Text(
                text = "Hello World!",
                color = MaterialTheme.colorScheme.primary,
                style = MaterialTheme.typography.displayLarge,
                modifier = Modifier
            )
        }
    }
}

PREVIEW

Here is the Expected Preview of the Composable (This Preview is from a brand new Project where dynamic color preview perfecly works):

Here I expect the color to be RED dominated but the color I am getting in the preview is from the static theme.

This my Color.kt file that stores each color value.

val md_theme_light_primary = Color(0xFF3F5AA9)
val md_theme_light_onPrimary = Color(0xFFFFFFFF)
val md_theme_light_primaryContainer = Color(0xFFDBE1FF)
val md_theme_light_onPrimaryContainer = Color(0xFF00174C)
val md_theme_light_secondary = Color(0xFF3E5AA9)
val md_theme_light_onSecondary = Color(0xFFFFFFFF)
val md_theme_light_secondaryContainer = Color(0xFFDBE1FF)
val md_theme_light_onSecondaryContainer = Color(0xFF00174B)
val md_theme_light_tertiary = Color(0xFF84468E)
val md_theme_light_onTertiary = Color(0xFFFFFFFF)
val md_theme_light_tertiaryContainer = Color(0xFFFFD6FF)
val md_theme_light_onTertiaryContainer = Color(0xFF350040)
val md_theme_light_error = Color(0xFFBA1A1A)
val md_theme_light_errorContainer = Color(0xFFFFDAD6)
val md_theme_light_onError = Color(0xFFFFFFFF)
val md_theme_light_onErrorContainer = Color(0xFF410002)
val md_theme_light_background = Color(0xFFFEFBFF)
val md_theme_light_onBackground = Color(0xFF1B1B1F)
val md_theme_light_surface = Color(0xFFFEFBFF)
val md_theme_light_onSurface = Color(0xFF1B1B1F)
val md_theme_light_surfaceVariant = Color(0xFFE2E1EC)
val md_theme_light_onSurfaceVariant = Color(0xFF45464F)
val md_theme_light_outline = Color(0xFF757680)
val md_theme_light_inverseOnSurface = Color(0xFFF2F0F4)
val md_theme_light_inverseSurface = Color(0xFF303034)
val md_theme_light_inversePrimary = Color(0xFFB4C5FF)
val md_theme_light_surfaceTint = Color(0xFF3F5AA9)
val md_theme_light_outlineVariant = Color(0xFFC6C6D0)
val md_theme_light_scrim = Color(0xFF000000)

val md_theme_dark_primary = Color(0xFFB4C5FF)
val md_theme_dark_onPrimary = Color(0xFF012978)
val md_theme_dark_primaryContainer = Color(0xFF244290)
val md_theme_dark_onPrimaryContainer = Color(0xFFDBE1FF)
val md_theme_dark_secondary = Color(0xFFB4C5FF)
val md_theme_dark_onSecondary = Color(0xFF002A77)
val md_theme_dark_secondaryContainer = Color(0xFF234290)
val md_theme_dark_onSecondaryContainer = Color(0xFFDBE1FF)
val md_theme_dark_tertiary = Color(0xFFF6ADFE)
val md_theme_dark_onTertiary = Color(0xFF50155C)
val md_theme_dark_tertiaryContainer = Color(0xFF692E74)
val md_theme_dark_onTertiaryContainer = Color(0xFFFFD6FF)
val md_theme_dark_error = Color(0xFFFFB4AB)
val md_theme_dark_errorContainer = Color(0xFF93000A)
val md_theme_dark_onError = Color(0xFF690005)
val md_theme_dark_onErrorContainer = Color(0xFFFFDAD6)
val md_theme_dark_background = Color(0xFF1B1B1F)
val md_theme_dark_onBackground = Color(0xFFE4E2E6)
val md_theme_dark_surface = Color(0xFF1B1B1F)
val md_theme_dark_onSurface = Color(0xFFE4E2E6)
val md_theme_dark_surfaceVariant = Color(0xFF45464F)
val md_theme_dark_onSurfaceVariant = Color(0xFFC6C6D0)
val md_theme_dark_outline = Color(0xFF8F909A)
val md_theme_dark_inverseOnSurface = Color(0xFF1B1B1F)
val md_theme_dark_inverseSurface = Color(0xFFE4E2E6)
val md_theme_dark_inversePrimary = Color(0xFF3F5AA9)
val md_theme_dark_surfaceTint = Color(0xFFB4C5FF)
val md_theme_dark_outlineVariant = Color(0xFF45464F)
val md_theme_dark_scrim = Color(0xFF000000)

val seed = Color(0xFFB4C3FA)

This is Theme.kt file that defines the theme for the app.

private val LightColorScheme = lightColorScheme(
    primary = md_theme_light_primary,
    onPrimary = md_theme_light_onPrimary,
    primaryContainer = md_theme_light_primaryContainer,
    onPrimaryContainer = md_theme_light_onPrimaryContainer,
    secondary = md_theme_light_secondary,
    onSecondary = md_theme_light_onSecondary,
    secondaryContainer = md_theme_light_secondaryContainer,
    onSecondaryContainer = md_theme_light_onSecondaryContainer,
    tertiary = md_theme_light_tertiary,
    onTertiary = md_theme_light_onTertiary,
    tertiaryContainer = md_theme_light_tertiaryContainer,
    onTertiaryContainer = md_theme_light_onTertiaryContainer,
    error = md_theme_light_error,
    errorContainer = md_theme_light_errorContainer,
    onError = md_theme_light_onError,
    onErrorContainer = md_theme_light_onErrorContainer,
    background = md_theme_light_background,
    onBackground = md_theme_light_onBackground,
    surface = md_theme_light_surface,
    onSurface = md_theme_light_onSurface,
    surfaceVariant = md_theme_light_surfaceVariant,
    onSurfaceVariant = md_theme_light_onSurfaceVariant,
    outline = md_theme_light_outline,
    inverseOnSurface = md_theme_light_inverseOnSurface,
    inverseSurface = md_theme_light_inverseSurface,
    inversePrimary = md_theme_light_inversePrimary,
    surfaceTint = md_theme_light_surfaceTint,
    outlineVariant = md_theme_light_outlineVariant,
    scrim = md_theme_light_scrim,
)


val DarkColorScheme = darkColorScheme(
    primary = md_theme_dark_primary,
    onPrimary = md_theme_dark_onPrimary,
    primaryContainer = md_theme_dark_primaryContainer,
    onPrimaryContainer = md_theme_dark_onPrimaryContainer,
    secondary = md_theme_dark_secondary,
    onSecondary = md_theme_dark_onSecondary,
    secondaryContainer = md_theme_dark_secondaryContainer,
    onSecondaryContainer = md_theme_dark_onSecondaryContainer,
    tertiary = md_theme_dark_tertiary,
    onTertiary = md_theme_dark_onTertiary,
    tertiaryContainer = md_theme_dark_tertiaryContainer,
    onTertiaryContainer = md_theme_dark_onTertiaryContainer,
    error = md_theme_dark_error,
    errorContainer = md_theme_dark_errorContainer,
    onError = md_theme_dark_onError,
    onErrorContainer = md_theme_dark_onErrorContainer,
    background = md_theme_dark_background,
    onBackground = md_theme_dark_onBackground,
    surface = md_theme_dark_surface,
    onSurface = md_theme_dark_onSurface,
    surfaceVariant = md_theme_dark_surfaceVariant,
    onSurfaceVariant = md_theme_dark_onSurfaceVariant,
    outline = md_theme_dark_outline,
    inverseOnSurface = md_theme_dark_inverseOnSurface,
    inverseSurface = md_theme_dark_inverseSurface,
    inversePrimary = md_theme_dark_inversePrimary,
    surfaceTint = md_theme_dark_surfaceTint,
    outlineVariant = md_theme_dark_outlineVariant,
    scrim = md_theme_dark_scrim,
)

val LightBackgroundTheme = BackgroundTheme(color = md_theme_light_inverseOnSurface)

val DarkBackgroundTheme = BackgroundTheme(color = md_theme_dark_inverseOnSurface)


@Composable
fun ClockTheme(
    useDarkTheme: Boolean = isSystemInDarkTheme(),
    content: @Composable () -> Unit
) {
    val supportsDynamicTheming = Build.VERSION.SDK_INT >= Build.VERSION_CODES.S

    val colorScheme = when {
        supportsDynamicTheming -> {
            val context = LocalContext.current
            if (useDarkTheme) dynamicDarkColorScheme(context) else dynamicLightColorScheme(context)
        }
        else -> if (useDarkTheme) DarkColorScheme else LightColorScheme
    }

    val defaultBackgroundTheme = BackgroundTheme(
        color = colorScheme.surface,
        tonalElevation = 2.dp,
    )

    val backgroundTheme = when {
        supportsDynamicTheming -> defaultBackgroundTheme
        else -> if (useDarkTheme) DarkBackgroundTheme else  LightBackgroundTheme
    }

    val tintTheme = when {
        supportsDynamicTheming -> TintTheme(colorScheme.primary)
        else -> TintTheme()
    }

    val view = LocalView.current
    if (!view.isInEditMode) {
        SideEffect {
            val window = (view.context as Activity).window
            window.statusBarColor = colorScheme.background.toArgb()
            WindowCompat.getInsetsController(window, view).isAppearanceLightStatusBars = !useDarkTheme
        }
    }

    CompositionLocalProvider(
        LocalBackgroundTheme provides backgroundTheme,
        LocalTintTheme provides tintTheme,
    ){
        MaterialTheme(
            colorScheme = colorScheme,
            typography = Typography,
            content = content
        )
    }
}

These are the dependencies in the module level gradle file for compose:

// compose
    implementation(platform("androidx.compose:compose-bom:2024.03.00"))
    implementation("androidx.compose.ui:ui")
    implementation("androidx.compose.ui:ui-graphics")
    implementation("androidx.compose.ui:ui-tooling-preview")
    implementation("androidx.compose.material3:material3")
    implementation("androidx.compose.material3:material3-window-size-class")

I have spent couple of days in sorting this issue but I am unable to do it. Kindly help. Feel free to ask for more information regarding the issue.

I expect to get the previews with dynamic colors in android studio.