The problem ‘Android Studio xml preview issue failed to initialize editor’ 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 a preview for your project
Given below is the snippet of the problem ‘Android Studio xml preview issue failed to initialize editor’ even after you tried to Invalidate Caches/Restart :
Error: failed to initialize editor

The problem, ‘Android Studio xml preview issue failed to initialize editor’ is seen because the AGP (Android Gradle Plugin) in your project file is not up to date.
For a quick fix you can upgrade your AGP (Android Gradle Plugin) to solve your error.
To fix the problem “Android Studio xml preview issue failed to initialize editor”, you can 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.
Alternatively, you can repair your IDE by selecting File > Repair Your IDE. This Will fix your issue, allowing you to view the Android layout without experiencing any problems.
Steps to Fix the problem ‘Android Studio xml preview issue failed to initialize editor’ 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.
This should help you fix and understand the problem, ‘Android Studio xml preview issue failed to initialize editor’
Method 2: Repair your IDE
If the above steps have failed to resolve your error and attempting to initialise the editor failed in Android Studio. Alternatively, you can repair your IDE by selecting File > Repair Your IDE.
This Will fix your issue, allowing you to view the Android layout without experiencing any problems.
This should help you fix and understand the problem, ‘Android Studio xml preview issue failed to initialize editor’
Conclusion
The AGP (Android Gradle Plugin) in your project file is out of date, which causes the issue, “Android Studio xml preview issue failed to initialise editor.” You can upgrade your AGP to repair your problem quickly.