Android Manifest merge error when removing package name for namespace

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According to this doc we no longer need to provide package name in AndroidManifest.xml and instead use namespace in build.gradle and there we can define our package name.

package="org.sample.domain" found in source AndroidManifest.xml: C:\Users\user\Desktop\Projects\Sample\app\libs\sample\src\main\AndroidManifest.xml.
Setting the namespace via a source AndroidManifest.xml's package attribute is deprecated.
Please instead set the namespace (or testNamespace) in the module's build.gradle file, as described here: https://developer.android.com/studio/build/configure-app-module#set-namespace
This migration can be done automatically using the AGP Upgrade Assistant, please refer to https://developer.android.com/studio/build/agp-upgrade-assistant for more information.

But upon doing it the Merged Manifest tab shows error stating that I am not providing a package name. I tried both at the same time but the warning build shows again.

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