"method found: 'compileOnly()" with Intellij and Gradle 3.5.1

Question

I can't figure out why I keep getting Error:(28, 0) Build script error, unsupported Gradle DSL method found: 'compileOnly()'! when refreshing my Gradle project on Intellij. This is the relevant section of my build.gradle:

dependencies {
    testCompile group: 'junit', name: 'junit', version: '4.11'
    compileOnly 'org.projectlombok:lombok:1.16.18'
    compile group: 'com.google.guava', name: 'guava', version: '22.0'
}

I'm using gradle 3.5.1:

$ gradle -v

------------------------------------------------------------
Gradle 3.5.1
------------------------------------------------------------

Build time:   2017-06-16 14:36:27 UTC
Revision:     d4c3bb4eac74bd0a3c70a0d213709e484193e251

Groovy:       2.4.10
Ant:          Apache Ant(TM) version 1.9.6 compiled on June 29 2015
JVM:          1.8.0_66 (Oracle Corporation 25.66-b18)
OS:           Windows 10 10.0 amd64

And I get the same if I print GRADLE_HOME as suggested here:

$ gradle getHomeDir

:getHomeDir
C:\Program_Files\gradle-3.5.1

BUILD SUCCESSFUL

gradle build runs fine from command line. I've tried adding apply plugin: 'idea' as suggested by the IDEA, and also running gradle idea from command line, but I'm still stuck with this problem.

These are my Gradle settings:

Gradle settings

easy fix would be to rename compileOnly with compile and it should work fine. — Akshay Srivastava, Aug 28 '17 at 14:52
Yes, I've done that, but `compile` is not the same as `compileOnly` and I'd like to know why it doesn't work as it should — saralor, Aug 28 '17 at 15:00
@lu.koerfer `base`, `java`, `io.franzbecker.gradle-lombok` and `idea` — saralor, Aug 29 '17 at 09:12
I really wonder what `io.franzbecker.gradle-lombok` is supposed to achieve. I’ve never seen it before and are using Lombok quite fine without it. — Michael Piefel, Apr 15 '18 at 09:29

"method found: 'compileOnly()" with Intellij and Gradle 3.5.1

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