java.lang.SecurityException: Writable dex file is not allowed.

[andreik44455]

After updating the target SDK to 35, the app builds but crashes at runtime with the following error:

FATAL EXCEPTION: main
Process: com.afwsamples.testdpc, PID: 10710
java.lang.RuntimeException: Unable to instantiate application com.google.devtools.build.android.incrementaldeployment.StubApplication package com.afwsamples.testdpc: java.lang.SecurityException: Writable dex file '/data/local/tmp/incrementaldeployment/com.afwsamples.testdpc/dex/incremental_classes2.dex' is not allowed.
	at android.app.LoadedApk.makeApplicationInner(LoadedApk.java:1478)
	at android.app.LoadedApk.makeApplicationInner(LoadedApk.java:1403)
	at android.app.ActivityThread.handleBindApplication(ActivityThread.java:7546)
	at android.app.ActivityThread.-$$Nest$mhandleBindApplication(Unknown Source:0)
	at android.app.ActivityThread$H.handleMessage(ActivityThread.java:2449)
	at android.os.Handler.dispatchMessage(Handler.java:109)
	at android.os.Looper.loopOnce(Looper.java:232)
	at android.os.Looper.loop(Looper.java:317)
	at android.app.ActivityThread.main(ActivityThread.java:8787)
	at java.lang.reflect.Method.invoke(Native Method)
	at com.android.internal.os.RuntimeInit$MethodAndArgsCaller.run(RuntimeInit.java:591)
	at com.android.internal.os.ZygoteInit.main(ZygoteInit.java:871)
Caused by: java.lang.SecurityException: Writable dex file '/data/local/tmp/incrementaldeployment/com.afwsamples.testdpc/dex/incremental_classes2.dex' is not allowed.
	at dalvik.system.DexFile.openDexFileNative(Native Method)
	at dalvik.system.DexFile.openDexFile(DexFile.java:406)
	at dalvik.system.DexFile.<init>(DexFile.java:128)
	at dalvik.system.DexFile.<init>(DexFile.java:101)
	at dalvik.system.DexPathList.loadDexFile(DexPathList.java:438)
	at dalvik.system.DexPathList.makeDexElements(DexPathList.java:387)
	at dalvik.system.DexPathList.<init>(DexPathList.java:166)
	at dalvik.system.BaseDexClassLoader.<init>(BaseDexClassLoader.java:160)
	at dalvik.system.BaseDexClassLoader.<init>(BaseDexClassLoader.java:105)
	at com.google.devtools.build.android.incrementaldeployment.IncrementalClassLoader$DelegateClassLoader.<init>(IncrementalClassLoader.java:57)
	at com.google.devtools.build.android.incrementaldeployment.IncrementalClassLoader$DelegateClassLoader.<init>(IncrementalClassLoader.java:54)
	at com.google.devtools.build.android.incrementaldeployment.IncrementalClassLoader.createDelegateClassLoader(IncrementalClassLoader.java:96)
	at com.google.devtools.build.android.incrementaldeployment.IncrementalClassLoader.<init>(IncrementalClassLoader.java:38)
	at com.google.devtools.build.android.incrementaldeployment.IncrementalClassLoader.inject(IncrementalClassLoader.java:113)
	at com.google.devtools.build.android.incrementaldeployment.StubApplication.instantiateRealApplication(StubApplication.java:338)
	at com.google.devtools.build.android.incrementaldeployment.StubApplication.attachBaseContext(StubApplication.java:546)
	at android.app.Application.attach(Application.java:346)
	at android.app.Instrumentation.newApplication(Instrumentation.java:1355)
	at android.app.LoadedApk.makeApplicationInner(LoadedApk.java:1471)
	at android.app.LoadedApk.makeApplicationInner(LoadedApk.java:1403) 
	at android.app.ActivityThread.handleBindApplication(ActivityThread.java:7546) 
	at android.app.ActivityThread.-$$Nest$mhandleBindApplication(Unknown Source:0) 
	at android.app.ActivityThread$H.handleMessage(ActivityThread.java:2449) 
	at android.os.Handler.dispatchMessage(Handler.java:109) 
	at android.os.Looper.loopOnce(Looper.java:232) 
	at android.os.Looper.loop(Looper.java:317) 
	at android.app.ActivityThread.main(ActivityThread.java:8787) 
	at java.lang.reflect.Method.invoke(Native Method) 
	at com.android.internal.os.RuntimeInit$MethodAndArgsCaller.run(RuntimeInit.java:591) 
	at com.android.internal.os.ZygoteInit.main(ZygoteInit.java:871) 

Android Studio details:
Android Studio Ladybug | 2024.2.1 Patch 3
Build #AI-242.23339.11.2421.12700392, built on November 22, 2024
Runtime version: 21.0.3+-79915917-b509.11 aarch64

Bazel version:
bazel 7.4.1-homebrew