Android Databinding On Inner Class Not Updating TextView

App runs but the TextView doesn't get update here is the relevant code. activity_picker_dashboard.xml

If you want to include a data binding layout from a regular layout, you need to find the root view of the layout and call bind() on it. Maybe something like this:

@Override
protected void onCreate(Bundle savedInstanceState) {
    super.onCreate(savedInstanceState);

    setContentView(R.layout.activity_picker_dashboard);
    View bindingRoot = findViewById(R.id.toolbar);

    LayoutHeaderBinding binding = LayoutHeaderBinding.bind(bindingRoot);

    ProfileResponse.Payload profilePayload = new ProfileResponse.Payload();
    profilePayload.setFirstName("Test");

    binding.setProfilePayload(profilePayload);
}

However, it is better to make your Activity's layout a data binding layout and you won't have to do that extra work:

<?xml version="1.0" encoding="utf-8"?>
<layout xmlns:android="http://schemas.android.com/apk/res/android">
    <data>
        <variable
            name="profilePayload"
            type="myms.models.ProfileResponse.Payload"/>
    </data>
    <android.support.constraint.ConstraintLayout
        android:layout_width="match_parent"
        android:layout_height="match_parent">

        <!-- Top header -->

        <include layout="@layout/layout_header" app:profilePayload="@{profilePayload}" />

        <!-- DrawerLayout -->
    </android.support.constraint.ConstraintLayout>
</layout>

And then your binding code is much simpler and less error prone:

@Override
protected void onCreate(Bundle savedInstanceState) {
    super.onCreate(savedInstanceState);

    ActivityPickerDashboardBinding binding = 
        DataBindingUtil.setContentView(this, R.layout.activity_picker_dashboard);

    ProfileResponse.Payload profilePayload = new ProfileResponse.Payload();
    profilePayload.setFirstName("Test");

    binding.setProfilePayload(profilePayload);
}

On a different note, I think Android data binding and butterknife have significant overlap in functionality and I would recommend choosing one or the other, but not both.