anyone here was able to migrate to JDK 17 and keep kapt working on android projects? Related link

I would advice you to configure Gradle JDK toolchain:

kotlin.jvmToolchain(17)

The problem is that AGP 8.0 requires JDK 17, setting jvmToolChain 17, forces the bytecode to not be compatible with Android.

you mean running AGP 8.0 requires JDK 17?

Yes, but the bytecode should be compatible with Java 8/11

then use

kotlin.jvmToolchain(8)

while running Gradle build on JDK 17

With that the problem now is that, I will need to have JDK 17 and JDK 8/11 installed in the dev machine and CI server.

Gradle should autoprovision missing JDKs required for build. If you really don't want to use toolchain - you could just configure Kotlin jvm target:

tasks.withType<org.jetbrains.kotlin.gradle.tasks.KotlinJvmCompile>().configureEach {
    compilerOptions.jvmTarget.set(org.jetbrains.kotlin.gradle.dsl.JvmTarget.JVM_1_8)
}

Yes, but the bytecode should be compatible with Java 8/11

That seems wrong to me. We have everything pointed at JDK17 and its been fine. D8/R8 seem to handle it fine. We also have library desugaring via

# <https://developer.android.com/studio/write/java8-support#library-desugaring-versions>
desugar-jdk = { group = "com.android.tools", name = "desugar_jdk_libs", version = "2.0.3" }