AS: Dolphin | 2021.3.1 Kotlin plugin: 1.7.10 Android Gradle Plugin: 7.0.4 Gradle: 7.1.1 Gradle JDK: version 11.0.13
I've upgraded my Android Studio to Dolphin 2021.3.1 from Chipmunk 2021.2.1 and after updating Android Studio I'm facing issue that my project is showing error "Failed to initialize editor" in all my xml files.
I've tried the following:
But nothing helped me out!
I have same issue with dolphin android studio. In my case, I have upgraded the project AGP (Android Gradle Plugin) and then restart the android studio.
Problem Solved.
Recommended: downgrade android studio to Chipmunk. If you don't want to upgrade AGP.

Please Follow these Steps:
Solution 1:
To Solve failed to initialize the editor in android studio You need to update Android Gradle Plugin. First of all, Open your File -> Project Structure ( Ctrl + Alt + Shift + S ) -> Project Then You need to update Android Gradle Plugin Version to 7.3.0 and Gradle Version to 7.4. And then You need to invalidate the cache and restart your IDE will resolve your error.
In build.gradle : Project Level
dependencies {
classpath 'com.android.tools.build:gradle:7.3.0'
}
In gradle-wrapper.properties :
distributionBase=GRADLE_USER_HOME
distributionUrl=https\://services.gradle.org/distributions/gradle-7.4-bin.zip
distributionPath=wrapper/dists
zipStorePath=wrapper/dists
zipStoreBase=GRADLE_USER_HOME
Solution 2:
To Solve failed to initialize editor in android studio You can also Repair Your IDE By Click on File -> Repair Your IDE… This will resolve your error and now you can see the android layout without facing the error. Thanks.
Solution 3:
You can downgrade android studio to Chipmunk. If you don't want to upgrade Android Gradle Plugin ( Which I tell in solution 1 above).
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