In Android Studio 2.0, Cannot find local variable of method in debug mode

In your gradle, do you enable test coverage ?

    buildTypes {
        debug {
            testCoverageEnabled = true
        }
    }

Set testCoverageEnabled = false , it fixed the issue. https://code.google.com/p/android/issues/detail?id=78045

if you have minifyEnabled true in

debug { minifyEnabled true debuggable true }

remove that and using just like that debug { debuggable true }

its work for me

Make sure you are not building a 'Release' Build Variant. You will get above warning when it is a Release Build.

Disable jack for debug build type (build.gradle):

buildTypes {
    ...
    debug {
        jackOptions {
            enabled false
        }
    }
}

Note: 1.8 source compatibility requires jack!