Error: Could not initialize class com.android.sdklib.repository.AndroidSdkHandler

This is because your classpath build tools in build.gradle root project is deprecated. Update it like this

buildscript {
    repositories {
        google()
        mavenCentral()
    }
    dependencies {
        classpath 'com.android.tools.build:gradle:7.0.0'
    }
}

and after that update your minimum sdk and build tools to latest and no problem again