DataBinding not working after Upgrade Android Studio 2.3

android-apt and hence using apt has been deprecated since Android Studio 2.2.
Following the android-apt migration guide, instead add the following to your build.gradle:

dependencies {    classpath 'com.android.tools.build:gradle:2.3.0' // use same gradle version!    annotationProcessor 'com.android.databinding:compiler:2.3.0'}

If you are using Kolin, instead use:

apply plugin: 'kotlin-kapt'dependencies {    classpath 'com.android.tools.build:gradle:2.3.0' // use same gradle version!    kapt 'com.android.databinding:compiler:2.3.0'}

The problem comes in a warning that is difficult to see amongst all of the errors:

Warning:Using incompatible plugins for the annotation processing: android-apt. This may result in an unexpected behavior.

If you remove apt, data binding works.

I have also faced the same issue.I was using ButterKnife and Dagger!!

Solved as follow

1) Remove from app level gradle file:

 apply plugin: 'android-apt'  or apply plugin: 'com.neenbedankt.android-apt'

2) Remove from project level gradle file:

classpath 'com.neenbedankt.gradle.plugins:android-apt:1.8'

3) And simply change "apt to annotationProcessor" as following dependencies:

 apt 'com.jakewharton:butterknife-compiler:8.5.1', apt "com.google.dagger:dagger-compiler:2.5"

To:

annotationProcessor 'com.jakewharton:butterknife-compiler:8.5.1',annotationProcessor "com.google.dagger:dagger-compiler:2.5"