I know, i'm little to late to the party. I got this issue lately on my Mac. I updated my eclipse (from Mars to Oxygen) all of the sudden i couldn't start my old project. First i thought, this must have something to do with the new eclipse, which wasn't all wrong. Because eclipse.ini file of Oxygen expected java-1.8.
I updated my java to latest (jdk1.8.0_152.jdk), but the problem remained, than i removed these parameters from the eclipse.ini, still was the same, i checked the "Run Configurations" and basically removed the same parameters from the arguments list. Now my projects seem to work just fine. I also needed to restore the platform, since Oxygen use e.4-platform.
- Remove these parameters from eclipse.ini file
- Select the project and go to "Run As"->"Run Configurations..."-> "Arguments" check the old configurations under "VM arguments" (it can be a product in case of an RCP-project)
- removed the VM-option(s)(actually, they can be more) not recognized and "Apply"-> "Run".