The problem ‘Android Studio Dolphin, does not show layout preview’ is seen when you are working on android studio and are trying to use dolphin for some of your old projects, and it is not showing you expected layout.
Given below is the snippet of the problem ‘Android Studio Dolphin, does not show layout preview’ even after you try to Invalidate Caches/ Restart:
Error: failed to initialize editor

In some layouts you might also get the error mentioned below:

The problem, ‘Android Studio Dolphin, does not show layout preview’ is seen because, several issues with Dolphin’s layout preview appear to exist. you can read up more about it here.
To fix the problem “Android Studio Dolphin, does not show layout preview”, perform an AGP (Android Gradle Plugin) project upgrade followed by an android studio restart.
You must upgrade Gradle to version 7.4 and the Android Gradle Plugin to version 7.3.0. After that, clearing your cache and restarting your IDE will fix the problem.
Alternately, downgrade the API versions to fix the issue. You will have to change your API version from version 33 to version 28. You will have to follow this by invalidate Cache Restart as the next step.
Steps to Fix the problem ‘Android Studio Dolphin, does not show layout preview’ Android Studio:
Method 1: update the Android Gradle Plugin
The first step is to update the Android Gradle Plugin to fix failed to initialise editor in Android Studio. First, open your File menu and select Project Structure (Ctrl + Alt + Shift + S).
Then, you must upgrade Gradle to version 7.4 and the Android Gradle Plugin to version 7.3.0. After that, clearing your cache and restarting your IDE will fix the problem.
To upgrade the Gradle version, select File -> Project Structure or press Ctrl + Alt + Shift + S. After doing so, invalidate the cache, restart Android Studio, and everything should work.
As a reference you can follow the image mentioned below:

This should help you fix and understand the problem, ‘Android Studio Dolphin, does not show layout preview’
Method 2: Downgrade your API version to version 28
If the above steps have failed to resolve your error and attempting to initialise the editor failed in Android Studio.
Alternately, downgrade the API versions to fix the issue. You will have to change your API version from version 33 to version 28.
You will have to follow this by invalidate Cache Restart as the next step.
This should help you fix and understand the problem, ‘Android Studio Dolphin, does not show layout preview’