I am using Android Studio Arctic Fox | 2020.3.1 Patch 1 after generating the ic_launcher icon for my app I get all the icons in mipmap resource folder as .png images. The default icons were in .webp format so I want to convert the automatically generated .png icons in .webp.
However, following the official guide on converting images to WebP in Android Studio nothing happens no matter the options I select (e.g. even if I uncheck Skip files where the encoded result is larger than the original). My minSdkVersion is 23 so it's not due to the transparency not being supported before api level 18.
I only get a generic message saying that the conversion was skipped but I don't understand why...

Am I missing something? Is this a bug in the latest IDE version?