class file major version 61 means that the class file you are trying to load has been compiled by Java 17 (and for Java 17+ only).

The Android toolchain only support only classes compiled for Java 11 (if the project is properly configured). So there is something wrong with the library you are trying to load.

As you don't give any details in your question what you are trying to do it is impossible to give you a more detailed answer.

With the help of @Robert answer,
I found out that the problem was with JAVA 17 and that the Gradle JDK in use was:
Android Studio java home version 17.0.1

I changed it to:
Android Studio default JDK version 11.0.10

Then everything worked like before...

You'll find the Gradle Settings under File > Project Structure...

...or through the Toolbar button: Project Structure...

Then click the Gradle Settings link.