DESCRIBE THE ISSUE IN DETAIL:

This project has a Gradle module who's main responsibility is packaging non-trivial library code such that it is consumable by the app's build. This is the only place in our project where source sets are customized. Commenting out this code results in a working build, but the app fails at runtime due to the missing library code. This code worked in AGP 7.3.1 and earlier.

android {
    sourceSets {
        val excludes = listOf("**/R.java")

        named("debug") {
            java.srcDirs(objPath.resolve("Debug/android/src"))
            resources.srcDirs(objPath.resolve("Debug/android/bin/unpacked"))
            jniLibs.srcDirs(objPath.resolve("Debug/android/bin/unpacked/lib"))
        }

        named("release") {
            java.srcDirs(objPath.resolve("Release/android/src"))
            resources.srcDirs(objPath.resolve("Release/android/bin/unpacked"))
            jniLibs.srcDirs(objPath.resolve("Release/android/bin/unpacked/lib"))
        }
    }

Cause: java.lang.StackOverflowError
	at com.android.build.gradle.internal.api.DefaultAndroidSourceDirectorySet.srcDir(DefaultAndroidSourceDirectorySet.kt:232)
	at com.android.build.gradle.internal.api.DefaultAndroidSourceDirectorySet.srcDir(DefaultAndroidSourceDirectorySet.kt:70)
	at com.android.build.gradle.internal.api.DefaultAndroidSourceDirectorySet.srcDir(DefaultAndroidSourceDirectorySet.kt:70)
	at com.android.build.gradle.internal.api.DefaultAndroidSourceDirectorySet.srcDir(DefaultAndroidSourceDirectorySet.kt:70)

STEPS TO REPRODUCE:

Update AGP 7.3.1 -> 7.4
Build

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Studio Build: Electric Eel Version of Gradle Plugin: 7.4.0 Version of Gradle: 7.5, 7.5.1, 7.6 Version of Java: 11, 17 OS: macOS 12