There are a lot of reasons why this error occurs. Here just lists some of them that I found; all I can do is guess.
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You are using AdMob components. These are deprecated and you cannot use them anymore. Ref: I can’t compile aab file, stuck at Generating manifest file - #5 by deanart2012
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You’re importing a project from another builder. Make sure that you have set ALL properties correctly, for example, do not leave the Theme blank. Ref: YAIL compiler - AAPT execution failed.--> its a very simple web view app - #2 by dora_paz
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You have a project in a project. Ref: App not compile - Build Failed - #22 by Boban
For a full list, see: Search results for 'generating manifest file' - Kodular Community.