Gradle version: 4.5.1
Android Plugin Version: 3.2.0-alpha02
Module Compile Sdk Version: 27
Module Build Tools Version: 27.0.3
Android SDK Tools version: 26.1..1

The CI installation of the Android SDK works with the 3.1.0-alpha04 plugin, but does not with the 3.2.0-alpha02. I haven't tested the intermediate plugin versions to see where it breaks.

I downloaded the standalone tools and then ran the following:

./sdkmanager "add-ons;addon-google_apis-google-21" "add-ons;addon-google_apis-google-22" "add-ons;addon-google_apis-google-23" "add-ons;addon-google_apis-google-24" "build-tools;27.0.3" "extras;android;m2repository" "extras;google;google_play_services" "extras;google;m2repository" "extras;m2repository;com;android;support;constraint;constraint-layout-solver;1.0.2" "extras;m2repository;com;android;support;constraint;constraint-layout;1.0.2" "platforms;android-21" "platforms;android-22" "platforms;android-23" "platforms;android-24" "platforms;android-25" "platforms;android-26" "system-images;android-21;google_apis;x86" "system-images;android-22;google_apis;x86" "system-images;android-23;google_apis;x86" "system-images;android-24;google_apis;x86" "system-images;android-25;google_apis;x86" "system-images;android-26;google_apis;x86" "platforms;android-27" "system-images;android-27;google_apis;x86"

Using an SDK that was installed using Android Studio works just fine.

The error is:

:app:compileReleaseJavaWithJavacFatal Error: Unable to find package java.lang in classpath or bootclasspath
FAILED

FAILURE: Build failed with an exception.

* What went wrong:
Execution failed for task ':app:compileReleaseJavaWithJavac'.
> Compilation failed; see the compiler error output for details.