16 Feb 2017
Since I just had this issue and found nothing on the forums I am posting this very quick article.
If you encounter this error while doing auto instrumentation:
Multidex preprocessing failed
The following properties should help.
For versions < 6.2:
For versions >= 6.2
NOTE: Adjust the value of X according to the log messages you receive during the auto instrumentation process.
You will probably need to run the command line auto instrumentation process to get the detailed messaged needed to tweak these settings.