In android/app/build.gradle, add the following setting in the android block.

aaptOptions {
    noCompress 'tflite'
    noCompress 'lite'
}

So you have to configure your app/build.gradle into:

plugins {
    id "com.android.application"
    id "kotlin-android"
    // The Flutter Gradle Plugin must be applied after the Android and Kotlin Gradle plugins.
    id "dev.flutter.flutter-gradle-plugin"
}

def keystoreProperties = new Properties()
def keystorePropertiesFile = rootProject.file('key.properties')
if (keystorePropertiesFile.exists()) {
    keystoreProperties.load(new FileInputStream(keystorePropertiesFile))
}

android {
    namespace = "com.example.myappku"
    compileSdk = flutter.compileSdkVersion
    ndkVersion = "27.0.12077973"

    compileOptions {
        sourceCompatibility = JavaVersion.VERSION_1_8
        targetCompatibility = JavaVersion.VERSION_1_8
    }

    kotlinOptions {
        jvmTarget = JavaVersion.VERSION_1_8
    }

    defaultConfig {
        // TODO: Specify your own unique Application ID (https://developer.android.com/studio/build/application-id.html).
        applicationId = "com.example.myappku"
        // You can update the following values to match your application needs.
        // For more information, see: https://flutter.dev/to/review-gradle-config.
        minSdk = flutter.minSdkVersion
        targetSdk = flutter.targetSdkVersion
        versionCode = flutter.versionCode
        versionName = flutter.versionName
    }

    signingConfigs {
        release {
            keyAlias = keystoreProperties['keyAlias']
            keyPassword = keystoreProperties['keyPassword']
            storeFile = keystoreProperties['storeFile'] ? file(keystoreProperties['storeFile']) : null
            storePassword = keystoreProperties['storePassword']
        }
    }

    buildTypes {
        release {
            minifyEnabled true
            shrinkResources true
            proguardFiles getDefaultProguardFile(
                    'proguard-android-optimize.txt'),
                    'proguard-rules.pro'
            // TODO: Add your own signing config for the release build.
            // Signing with the debug keys for now, so `flutter run --release` works.
            signingConfig = signingConfigs.release
        }
    }

    aaptOptions {
        noCompress 'tflite'
        noCompress 'lite'
    }
}

flutter {
    source = "../.."
}

Then rebuild your project.

Please consider this version matrix based on the Android Studio version:

Here’s the source.

Update

Here’s what I perform to resolve the exception:

Execution failed for task ‘:app:minifyReleaseWithR8’

Add this to your proguard-rules.pro file:

# Ignore Play Core dynamic features if not used
-dontwarn com.google.android.play.core.**
-dontwarn io.flutter.embedding.engine.deferredcomponents.**

# Prevent R8 from removing these classes (if referenced)
-keep class com.google.android.play.core.** { *; }
-keep class io.flutter.embedding.engine.deferredcomponents.** { *; }

Before building a release build of an APK, I perform these commands first:

flutter clean
flutter pub get
cd android
./gradlew build

Here’s what I’ve got:

PS C:path_to_your_appandroid> flutter build apk –split-per-abi
Changing current working directory to: C:path_to_your_app

Font asset “MaterialIcons-Regular.otf” was tree-shaken, reducing it
from 1645184 to 1384 bytes (99.9% reduction). Tree-shaking can be
disabled by providing the –no-tree-shake-icons flag when building
your app. Running Gradle task ‘assembleRelease’…
21.4s √ Built buildappoutputsflutter-apkapp-armeabi-v7a-release.apk (11.2MB) √
Built buildappoutputsflutter-apkapp-arm64-v8a-release.apk (13.8MB)
√ Built buildappoutputsflutter-apkapp-x86_64-release.apk (14.9MB)

ADDITIONALLY

Add first your proguard-rules.pro file, if it is not yet added to your project.

In your Android Studio, right-click on the app directory, select New > File, then type proguard-rules.pro to add the file.

Here’s my build configuration:

proguard-rules.pro file

#Flutter Wrapper
-keep class io.flutter.app.** { *; }
-keep class io.flutter.plugin.**  { *; }
-keep class io.flutter.util.**  { *; }
-keep class io.flutter.view.**  { *; }
-keep class io.flutter.**  { *; }
-keep class io.flutter.plugins.**  { *; }

# Ignore Play Core dynamic features if not used
-dontwarn com.google.android.play.core.**
-dontwarn io.flutter.embedding.engine.deferredcomponents.**

# Prevent R8 from removing these classes (if referenced)
-keep class com.google.android.play.core.** { *; }
-keep class io.flutter.embedding.engine.deferredcomponents.** { *; }

gradle-wrapper.properties file

distributionBase=GRADLE_USER_HOME
distributionPath=wrapper/dists
zipStoreBase=GRADLE_USER_HOME
zipStorePath=wrapper/dists
distributionUrl=https://services.gradle.org/distributions/gradle-8.3-all.zip

settings.gradle file

pluginManagement {
    def flutterSdkPath = {
        def properties = new Properties()
        file("local.properties").withInputStream { properties.load(it) }
        def flutterSdkPath = properties.getProperty("flutter.sdk")
        assert flutterSdkPath != null, "flutter.sdk not set in local.properties"
        return flutterSdkPath
    }()

    includeBuild("$flutterSdkPath/packages/flutter_tools/gradle")

    repositories {
        google()
        mavenCentral()
        gradlePluginPortal()
    }
}

plugins {
    id "dev.flutter.flutter-plugin-loader" version "1.0.0"
    id "com.android.application" version "8.1.4" apply false
    id "org.jetbrains.kotlin.android" version "2.0.21" apply false
}

include ":app"

app/build.gradle file

plugins {
    id "com.android.application"
    id "kotlin-android"
    // The Flutter Gradle Plugin must be applied after the Android and Kotlin Gradle plugins.
    id "dev.flutter.flutter-gradle-plugin"
}

android {
    namespace = "com.example.flutter_build_ref"
    compileSdk = 35 // flutter.compileSdkVersion
    ndkVersion = flutter.ndkVersion

    compileOptions {
        sourceCompatibility = JavaVersion.VERSION_1_8
        targetCompatibility = JavaVersion.VERSION_1_8
    }

    kotlinOptions {
        jvmTarget = JavaVersion.VERSION_1_8
    }
    
    signingConfigs {
        release {
            keyAlias = "dummyKeyAlias"
            keyPassword = "dummypw"
            storeFile = file("C:/your_predefined_path/dummyKeyStore/keystore.jks")
            storePassword = "dummypw"
        }
    }

    defaultConfig {
        // TODO: Specify your own unique Application ID (https://developer.android.com/studio/build/application-id.html).
        applicationId = "com.example.flutter_build_ref"
        // You can update the following values to match your application needs.
        // For more information, see: https://flutter.dev/to/review-gradle-config.
        minSdk =  23 // flutter.minSdkVersion
        targetSdk = flutter.targetSdkVersion
        versionCode = flutter.versionCode
        versionName = flutter.versionName
    }

    buildTypes {
        release {
            // TODO: Add your own signing config for the release build.
            // Signing with the debug keys for now, so `flutter run --release` works.

            minifyEnabled true
            // useProguard true
            shrinkResources true

            proguardFiles getDefaultProguardFile('proguard-android.txt'), 'proguard-rules.pro' 
            signingConfig = signingConfigs.release
        }
    }

    aaptOptions {
        noCompress 'tflite'
        noCompress 'lite'
    }
}

flutter {
    source = "../.."
}

NOTE: For testing purposes, I’ve decided to create a dummy key store.

I am using Android Studio Koala | 2024.1.1, but you can test my build in your updated Android Studio version (only if introduce other exception).

To answer the question,

Does the version of Java also have an impact?

Here’s the reference:

Java

Kotlin

Source: Compatibility Matrix.

Note: Based on my observation while dealing with gradle, kotlin, and java compatibilities. You have to understand what is the meaning of the exception logs coming from your app, before you adjust your certain tools version. Don’t forget to perform cleaning of caches while you are having struggles with your build. Sometimes, it introduces conflict with the cache build. Restarting your Android Studio IDE isn’t always necessary.

Tips: always read official tools documentation from which you are dealing with.

Here’s the supporting reference to somehow help you to deal with build issues.

I hope it helps!