You can use the compileOptions block in the gradle script in order to explicitly indicate what level (ver) of the language to use the compiler, you specified JAVA8.
compileOptions { sourceCompatibility JavaVersion.VERSION_1_8 targetCompatibility JavaVersion.VERSION_1_8 }
Jack compiler, not connected by default, but to work it was in it that support 8-ki, with reduced functionality, which is why you had a corresponding error.
Error: Jack is required to support java 8 language features.
In the new SDK with the new gradle with 3.0.0-alpha1 and higher there is no such need, because between the javac and dexc compilers, where the jack was located, now after the .class there is a desugar layer as the thirdLibrary and it is already embedded.
Therefore, it so happened that you updated Gradle SDK. You did not specify the jack block, otherwise you would have to remove it and everything started. And in the box you had such magic.
But like Jack, you can turn off Desugar in gradle.properties:
android.enableDesugar=false