In my case the error was not exactly as yours, but DexWorkAction aswell
FAILURE: Build failed with an exception.
* What went wrong:
Execution failed for task ':app:dexBuilderStagingDebugAndroidTest'.
> There were multiple failures while executing work items
> A failure occurred while executing com.android.build.gradle.internal.dexing.DexWorkAction
> Failed to process: /Users/me/projects/project/app/build/intermediates/asm_instrumented_project_classes/stagingDebugAndroidTest
> A failure occurred while executing com.android.build.gradle.internal.dexing.DexWorkAction
I had to upgrade two dependencies: dagger hilt and androidx.navigation. After syncing the project again, the error was gone. Even if I downgrade again, the error is gone. It seems this updated something internally that stopped failing
navigation_version = "2.5.3" // was 2.5.1
dagger_hilt_version = "2.44.2" // was 2.43.2
implementation "androidx.navigation:navigation-fragment-ktx:$navigation_version"
implementation "androidx.navigation:navigation-ui-ktx:$navigation_version"
implementation "androidx.navigation:navigation-dynamic-features-fragment:$navigation_version"
androidTestImplementation "androidx.navigation:navigation-testing:$navigation_version"
implementation "com.google.dagger:hilt-android:$dagger_hilt_version"
kapt "com.google.dagger:hilt-android-compiler:$dagger_hilt_version"
testImplementation "com.google.dagger:hilt-android-testing:$dagger_hilt_version"
kaptTest "com.google.dagger:hilt-android-compiler:$dagger_hilt_version"
androidTestImplementation "com.google.dagger:hilt-android-testing:$dagger_hilt_version"
kaptAndroidTest "com.google.dagger:hilt-android-compiler:$dagger_hilt_version"