Step 1:

Add the following configuration for splash in capacitor.config.json

"plugins": {
    "SplashScreen": {
      "launchAutoHide": false,
      "androidScaleType": "CENTER_CROP",
      "showSpinner": true,
      "splashFullScreen": false,
      "splashImmersive": false
    }
 }

Step 2:

In android studio goto res>values>styles.xml and replace

<style name="AppTheme.NoActionBarLaunch" parent="AppTheme.NoActionBar">
        <item name="android:background">@drawable/splash</item>
</style>

With….

  <style name="AppTheme.NoActionBarLaunch" parent="AppTheme.NoActionBar">
        <item name="android:windowNoTitle">true</item>
        <item name="android:windowActionBar">false</item>
        <item name="android:windowFullscreen">true</item>
        <item name="android:windowContentOverlay">@null</item>
        <item name="android:windowIsTranslucent">true</item>
 </style>