Android Studio 3.5 failing to compile data bindings

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As soon as I updated to Android Studio 3.5, I started running into compilation errors. My app is using both Java and Kotlin. I have some legacy Java code using data binding. Somehow the Kotlin compiler complains about unable to find Java bindings.

I have tried the following

  1. Invalidate cache/restart
  2. Delete .gradle
  3. Re-importing project
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