Android studio needs to be updated for Mac Monterey

Solution 1:

There are two problems here:

1. Android Studio uses Python 2, which Apple is committing to dropping in a future version of macOS. That's what the warning is saying, albeit in less technical terms. It's up to JetBrains to update their IDE to not require Python 2, then Google to merge this change into Android Studio. There's nothing you or I can do but hope that this gets done before whatever version of macOS that drops compatibility complete ships.
2. You're running into an unrelated bug in Android Studio causing it to crash.

Solution 2:

Actually, it doesn't update Android Studio itself. I believe you should download the latest version of it yourself. Link: Android Studio 2021.1.1 Canary (Note: Canary is known for preview builds, upgrade to a stable version in the future)

If it persists, then it might be a bug from Apple/Google I believe.