We have the same issue. The following google code issue seems to be 
tracking the issue https://code.google.com/p/android/issues/detail?id=187430

On Monday, November 30, 2015 at 12:35:06 PM UTC-5, Joshua Soberg wrote:
>
> Hey all,
>
>
>     I seem to be running into a problem with building projects when 
> merging resources from a referenced library. The message that I am getting 
> when running my build is as follows:
>
>
> FAILURE: Build failed with an exception.
>
>
> What went wrong:
> Execution failed for task ':<ProjectName>:'.
>
> > C:\<File path to project>\build\intermediates\exploded-aar\<Library name
> >\unspecified\res\drawable-xxxhdpi-v4\<Icon name>.png: Error: File path 
> too long on Windows, keep below 240 characters : <File path to project>\
> build\intermediates\exploded-aar\<Library name>\unspecified\res\drawable-
> xxxhdpi-v4\<Icon name>.png
>
> Try:
> Run with --stacktrace option to get the stack trace. Run with --info or 
> --debug 
> option to get more log output.
>
> BUILD FAILED
>
>     For reference, I am running Windows 10, gradle android plugin version 
> 15, gradle version 2.9, and build tools version 23.0.2.
>
>     This current setup for merging resources from nested libraries seems 
> to be creating extremely large files paths in Windows. Not too long ago I 
> was having the same problem building source (file path too long for 
> Windows), but that problem was resolved in a previous version of gradle. Is 
> there anything that I can do to alleviate this problem? Any help would be 
> appreciated.
>
> Thank you,
>     Joshua Soberg
>

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