When using compose version 1.2.0-beta03, The preview is having issues, Even after successful build it showing "Project needs to be compiled". Works fine when running in app in emulator and device, Any help?

Did you update the preview's version as well? If not, try to invalidate caches. It works fine on my machine.

Tried invalidate but no help

Which version of Studio?

Chipmunk 2021.2.1

Previews are a lot better in electric eel, I'd try that too

Does it need a specific compose version?

No I don't think so. Use JetBrains toolbox to make your life easier with trying out different studio versions