The Ransomware Protection of the newest Malwarebytes release kills the proper operation of the "Terminal" tab which starts an embedded cmd.exe in Android Studio 3.5.3 (latest) and IntelliJ 2019.3 (latest) . The part which seems to be breaking is in the so called "winpty" java library (in the case of Android Studio) or "winpty-agent.exe" and "winpty.dll" in case of IntelliJ. As Android Studio is based on IntelliJ it's no wonder both products are now affected.
The point is Malwarebytes doesn't report a ransomware beeing found but it kills the functionality of the embedded terminal which start cmd.exe in that it reports "Cannot start Local Terminal" in both Programs. Looking at the support forums for IntelliJ revealed that you can work around it be excluding "winpty-agent.exe" and "winpty.dll" from scanning to fix it.
In Android Studio winpty library is not externalized into a .exe & dll but the same java "winpty" package is used and it shows exactly the same error. To fix it I had to exclude "Android Studio" Folder in C:\Program Files from scanning too.
The logs in Android Studio is showing this error:
020-01-12 17:35:36,560 [ thread 10] INFO - erminal.AbstractTerminalRunner - Cannot open Local Terminal
java.util.concurrent.ExecutionException: Failed to start [cmd.exe] in C:/src/projects/cupboard_manager_ui
Caused by: java.io.IOException: Couldn't create PTY
... 8 more
Caused by: com.pty4j.PtyException: Error starting winpty: ConnectNamedPipe failed: Windows error 232
... 15 more
This more or less means that Malwarebytes is interfering with proper Terminal Allocation (see the "Couldn't create PTY" message) in this case. This needs to be fixed soon as IntelliJ and Android Studio are updating regularly and every new release installs into a version specific directory to keep previous isntallation working. So with every new release of Android Studio or IntelliJ it will break again and I will have to add another excluded folder to make it work and I also need to remember how I solved it please. Fix asap.
PS: For testing purposes it's probably enough to either install IntelliJ Community Edition or Android Studio and then open some dummy project and trying to open the embedded terminal in the bottom tabs while newest Malwarebytes is running. As soon as you disable "Ransomware Protection" from Realtime Scanning it works.