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I have not used so much AVD (Android Virtual Device). But for sure possible and working
I use most of the time my real device (via USB).
It think all AVD devices should work (you had to create one), e.g. Nexus 5 or 7. (I have also created one AVD device to simulate my Galaxy S3).
Just to bear in mind that you should select Android versions >= 4.3, best 4.4 (API levels 19 .. 21).
And I do not know what happens with the BLE functions and features. I would assume they are not emulated, most of the stuff related to BLE, e.g. sending Notifications, will not work on AVD (also the counterpart, the WICED Sense, would not be there or connected). AVD (emulated device) seems to be reasonable for me just for a HW-independent GUI, e.g. if you want to modify the Widgets, the GUI itself. But for BLE features ...?
My suggestion: use Android Studio and debug directly on the target device (e.g. Samsung Galaxy S3, Nexus 7/9). I do it this way, works pretty nice, including breakpoints, stepping through code (with ADB).
Can you let me know the following versions that you are using for Android Studio:
1. Android Studio version:???
I have Android Sudio version 0.8.14
2. JRE version:???
I have JRE 1.8.0_25-b18 x86
3. ADT bundle in SDK: ???
I have adt-bundle-windows-x86-20140702
4. SDK version:???
5. Anything else???
I use windows-7 laptop with 32 bit Operating System which has Intel i7 processor running at 2.8GHz.
With the above version, I am having problem to install necessary components when I try to use AVD. I also tried physically connecting my phone to USB/PC but no success yet to get the project to communicate with my phone.