I have the similar issue for AGP (Android Gradle Plugin)

Error "The project is using an incompatible version (AGP 7.4.2) of the Android Gradle plugin. Latest supported version is AGP 7.2.2"

It occurs in my case when I imported a project from GitHub, my android studio AGP version doesn't match the one form Github.

To Solve this:

1. Go to File → Project Structure.

2. Select the AGP version from the list.