I believe this is specific to using an emulator API level less than 36 with more recent versions of firebase.
I think "NetworkCapability 37 out of range" is referencing Android's NetworkCapabilities.NET_CAPABILITY_NOT_BANDWIDTH_CONSTRAINED (constant: 37) which was added in API 36.
I got the same error when using an API 35 emulator and it went away when using API 36.
Thank you @Glad1atoR and @j.f. for pointing out it was an emulator specific error.