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Android Studio 3.0 vs libgdx 1.9.7 vs Android plugin 3.0.0

See original GitHub issue

Issue details

Android Studio has just updated to version 3.0

Reproduction steps/code

If using default gradle properties - all works:

classpath ‘com.android.tools.build:gradle:2.2.0’
distributionUrl=https://services.gradle.org/distributions/gradle-2.14.1-all.zip

But if we update these settings to the recommended by the android studio 3:

classpath ‘com.android.tools.build:gradle:3.0.0’
distributionUrl=https://services.gradle.org/distributions/gradle-4.1-all.zip

We’ll see an error: Information:Gradle: Executing tasks: [:desktop:assemble, :core:assemble] Information:26.10.2017 00:52 - Compilation completed with 1 error and 0 warnings in 8s 188ms Error:Android Gradle Build Target: java.util.ServiceConfigurationError: com.android.ide.common.blame.parser.PatternAwareOutputParser: Provider com.squareup.sqldelight.intellij.parsing.OutputParser could not be instantiated

If we run the DesktopLauncher

there will be the following error

Stacktrace

java.lang.NoClassDefFoundError: com/badlogic/gdx/ApplicationListener
	at java.lang.Class.getDeclaredMethods0(Native Method)
	at java.lang.Class.privateGetDeclaredMethods(Class.java:2701)
	at java.lang.Class.privateGetMethodRecursive(Class.java:3048)
	at java.lang.Class.getMethod0(Class.java:3018)
	at java.lang.Class.getMethod(Class.java:1784)
	at sun.launcher.LauncherHelper.validateMainClass(LauncherHelper.java:544)
	at sun.launcher.LauncherHelper.checkAndLoadMain(LauncherHelper.java:526)
Caused by: java.lang.ClassNotFoundException: com.badlogic.gdx.ApplicationListener
	at java.net.URLClassLoader.findClass(URLClassLoader.java:381)
	at java.lang.ClassLoader.loadClass(ClassLoader.java:424)
	at sun.misc.Launcher$AppClassLoader.loadClass(Launcher.java:335)
	at java.lang.ClassLoader.loadClass(ClassLoader.java:357)
	... 7 more
Error: A JNI error has occurred, please check your installation and try again
Exception in thread "main" 
Process finished with exit code 1