Android Studio 3.0 Canary 2: attribute 'android:versionCode' not found

I've updated Android Studio to the latest canary build and now I can't run my app.

Every time when I try to build the project I get the following error:

Error:F:\...\**app_name**\app\build\intermediates\instant-run-support\debug\slice_0\AndroidManifest.xml:2 attribute 'android:versionCode' not found

I tried to manually open the file and the attribute is clearly there:

<?xml version="1.0" encoding="utf-8"?>
<manifest xmlns:android="http://schemas.android.com/apk/res/android"
      package="****"
      android:versionCode="1"
      android:versionName="1.0"
      split="lib_slice_0_apk">
</manifest>

I've tried to clean the project, invalidate cache, restart android studio but nothing helped.

This is my build.gradle (app) file:

apply plugin: 'com.android.application'

apply plugin: 'kotlin-android'

android {
    compileSdkVersion 25
    buildToolsVersion "25.0.3"
    defaultConfig {
        applicationId "****"
        minSdkVersion 16
        targetSdkVersion 25
        versionCode 1
        versionName "1.0"
        testInstrumentationRunner "android.support.test.runner.AndroidJUnitRunner"
    }
    buildTypes {
        release {
            minifyEnabled false
            proguardFiles getDefaultProguardFile('proguard-android.txt'), 'proguard-rules.pro'
        }
    }
}

dependencies {
    compile fileTree(include: ['*.jar'], dir: 'libs')
    androidTestCompile('com.android.support.test.espresso:espresso-core:2.2.2', {
        exclude group: 'com.android.support', module: 'support-annotations'
    })
    compile "org.jetbrains.kotlin:kotlin-stdlib-jre7:$kotlin_version"
    compile 'com.android.support:appcompat-v7:25.3.1'
    testCompile 'junit:junit:4.12'
    compile 'com.android.support.constraint:constraint-layout:1.0.2'
    compile 'com.android.support:design:25.3.1'
    compile 'com.android.support:cardview-v7:25.3.1'
    compile 'com.squareup.picasso:picasso:2.5.2'
}