The issue is when we have a project that enables databinding and dynamic feature. More specifically when we have a logic in our dfm layout that accesses some resources from application or library module.
See this activity_dynamic.xml example:

<TextView
   android:id="@+id/text_view_greeting"
   android:layout_width="wrap_content"
   android:layout_height="wrap_content"
   android:textSize="16sp"
   android:text="@{viewModel.login ? @string/text_login : @string/text_logout}"/>

@string/text_login and @string/text_logout are from app module. So when we build the app, databinding will create a generated file called ActivityDynamicBindingImpl, and this file will contain some logic like this:

// read viewModel.login ? @android:string/text_login : @android:string/text_logout
viewModel... = ((viewModelLogin) ? (textViewGreeting.getResources().getString(R.string.text_login)) : (textViewGreeting.getResources().getString(R.string.text_logout)));

It will make compilation error because dynamic module doesn't know R.string.text_login and R.string.text_logout.
So, we need to change them to full name com.yeuristic.reproducedatabindingdfm.R.string.text_login and com.yeuristic.reproducedatabindingdfm.R.string.text_logout.
But we can't do that since it is generated file.

Run the project and these errors will show up:

error: cannot find symbol viewModelLoginTextViewGreetingAndroidStringTextLoginTextViewGreetingAndroidStringTextLogout = ((viewModelLogin) ? (textViewGreeting.getResources().getString(R.string.text_login)) : (textViewGreeting.getResources().getString(R.string.text_logout)));
symbol:   variable text_login
location: class string

error: cannot find symbol viewModelLoginTextViewGreetingAndroidStringTextLoginTextViewGreetingAndroidStringTextLogout = ((viewModelLogin) ? (textViewGreeting.getResources().getString(R.string.text_login)) : (textViewGreeting.getResources().getString(R.string.text_logout)));
symbol:   variable text_logout
location: class string

Change your databinding logic to this

<TextView
    android:id="@+id/text_view_greeting"
    android:layout_width="wrap_content"
    android:layout_height="wrap_content"
    android:textSize="16sp"
    android:text="@{viewModel.login ? textViewGreeting.getResources().getString(com.yeuristic.reproducedatabindingdfm.R.string.text_login) : textViewGreeting.getResources().getString(com.yeuristic.reproducedatabindingdfm.R.string.text_logout)}"/>

Or you can uncomment it from activity_dynamic.xml that I've provided.