In Android Studio non stable releases the argument inside navigation.xml shows error message like this. The code compiles and runs properly.

There is an issue filed for it: https://issuetracker.google.com/issues/293665984

This is old issue. Even has same problem in Girrafe and was in flamingo too

Thanks @Mark T Gray and @Dhaval Gondaliya. I thought like the issue is something wrong with my configurations.