I updated my Android Studio to 3.0 in Ubuntu. When I loaded a project it fails to build and the same project has no issues when it was built in previous version(v2.3) of Android
Finally I found out the problem. It was due to some 9 patch icons that I used in my project resources. I have made use of some 3rd party tool to draw these icons. Now I replaced those icons with that of the same generated using Android studio(see how) and everything is working for me.
Also if you don't want to use AAPT2. You can disable by setting android.enableAapt2=false
in your gradle.properties
file as suggested by @capt.swag