Gradle 3.4 breaks Intellij 2016.3.4 scoping for project dependencies

Hi there,

Something about Gradle 3.4 is causing IntelliJ to mark project dependencies (and all of their transitive dependencies) as provided scope.

Attached is a simple project with a 3.3 wrapper that works fine (run the main class P2 to verify). Upgrade to 3.4, re-resolve in IntelliJ, run P2, and you will see the ClassNotFoundException on P1 because P1 is in the provided scoped project dependency.

Seems like a pretty major regression for a common use case. Can we be anticipate a 3.4 patch release or an IntelliJ release fixing the issue soon? (56.3 KB)

This issue tracks the problem: