1. The generator's update overwrites your settings
Every bubblewrap update resets org.gradle.jvmargs in gradle.properties to its default. On a machine with less free memory than that, it fails immediately.
Could not reserve enough space for 1572864KB object heap
Fix: use the environment variable instead of the file — it takes precedence.
$env:GRADLE_OPTS="-Xmx768m -Dfile.encoding=UTF-8"
★ Settings you keep in a generator-managed file disappear at the next generation.
2. A non-ASCII project path is rejected
Your project path contains non-ASCII characters
Work from an ASCII path. Do not disable the check — turning off the check does not teach the downstream tools to handle the path.
3. Editing the manifest does nothing until you run update
twa-manifest.json is only a blueprint; the actual build input is app/build.gradle. Change the package id and build straight away and you get a build with the old package name.
★ Also: editing it in a plain text editor mangles path escapes. Edit it structurally.