Our app uses Zoom SDK which contains files like this in res/raw folder:

<?xml version="1.0" encoding="utf-8"?>

<app name="zChat" version="1.1">
  <module name="zChatApp" version="2.0" ></module>
  <module name="zChatUI" version="2.0" ></module>
  <module name="zWebService" version="1.0"  caps="IdleHandler"></module>
  <module name="zData" version="1.0" ></module>
</app>

As you can see there is an empty line after xml declaration.

Both AGP 7.3.0-beta03 and AGP 7.4.0-alpha04 can't build an app containing this file with the following exception:

Caused by: javax.xml.stream.XMLStreamException: ParseError at [row,col]:[1,1]
Message: Content is not allowed in prolog.
	at java.xml/com.sun.org.apache.xerces.internal.impl.XMLStreamReaderImpl.next(XMLStreamReaderImpl.java:652)
	at com.android.build.gradle.internal.res.shrinker.usages.ToolsAttributeUsageRecorder.processResourceToolsAttributes(ToolsAttributeUsageRecorder.kt:69)
	at com.android.build.gradle.internal.res.shrinker.usages.ToolsAttributeUsageRecorder.processRawXml(ToolsAttributeUsageRecorder.kt:49)
	at com.android.build.gradle.internal.res.shrinker.usages.ToolsAttributeUsageRecorder.access$processRawXml(ToolsAttributeUsageRecorder.kt:37)
	at com.android.build.gradle.internal.res.shrinker.usages.ToolsAttributeUsageRecorder$recordUsages$2.accept(ToolsAttributeUsageRecorder.kt:45)
	at com.android.build.gradle.internal.res.shrinker.usages.ToolsAttributeUsageRecorder$recordUsages$2.accept(ToolsAttributeUsageRecorder.kt:45)
	at com.android.build.gradle.internal.res.shrinker.usages.ToolsAttributeUsageRecorder.recordUsages(ToolsAttributeUsageRecorder.kt:45)
	at com.android.build.gradle.internal.res.shrinker.ResourceShrinkerImpl.analyze(ResourceShrinkerImpl.kt:85)
	at com.android.build.gradle.internal.transforms.ShrinkProtoResourcesAction.doExecute(ShrinkResourcesNewShrinkerTask.kt:302)

When there is no files with an empty line after xml declaration ShrinkResourcesNewShrinkerTask executes correctly.

AGP 7.3.0-beta02 doesn't have this issue.

The issue is probably related to these changes: https://cs.android.com/android-studio/platform/tools/base/+/a01dac7c7fff60e3f98c90f50f5295415f623b80