My XML layout is not rendering with this error message. I am already using Java 8.
XML
Also using latest build tools in Gradle.
and
Set JDK_HOME and JAVA_HOME environment variables, in my case C:\Program Files\Java\jdk1.8.0_60.
JDK_HOME
JAVA_HOME
C:\Program Files\Java\jdk1.8.0_60
Check Java version in Help > About. It should show the JRE version you just set.
Help > About
That is it, now you can preview your layout in N.
N