React native build release error: uncompiled PNG file passed as argument. Must be compiled first into .flat file..

Error: uncompiled PNG file passed as argument. Must be compiled first into .flat file.. error: failed parsing overlays.

How to fix

DO NOT use android.enableAapt2=false in android/gradle.properties for temporary fixing. You will get the warning:

Use 'android.enableAapt2=true' to remove this warning.
It will be removed at the end of 2018..

DO

android/gradle.properties: keep as original

android.useDeprecatedNdk=true

android/build.gradle: upgrade gradle to 3.2.1

buildscript {
    repositories {
        google()
        jcenter()
    }
    dependencies {
        classpath 'com.android.tools.build:gradle:3.2.1'
    }
}

Full script of android/build.gradle

buildscript {
    repositories {
        google()
        jcenter()
    }
    dependencies {
        classpath 'com.android.tools.build:gradle:3.2.1'
    }
}
allprojects {
    repositories {
        google()
        mavenLocal()
        jcenter()
        maven {
            url "$rootDir/../node_modules/react-native/android"
        }
    }
}