Gradle-based projects under Java 17 try to launch Gradle daemon with VM option -XX:MaxPermSize=512m removed in Java 17

Running with Java 17 (now required?) with Gradle-based project fails because Gradle launcher command contains VM option -XX:MaxPermSize removed in Java 17.

Environment

• Operating System: macOS
• JDK version: Corretto 17.0.3.6.1
• Visual Studio Code version: 1.69
• Java extension version: 1.8.0

Steps To Reproduce

1. Open Gradle-based project
2. See Java project fail to be created
3. Look at output for Language Support for Java:

WARNING: Using incubator modules: jdk.incubator.foreign, jdk.incubator.vector
[Warn  - 10:34:48 PM] Jul 9, 2022, 10:34:48 PM Synchronize project slime failed due to an error connecting to the Gradle build.
Could not run phased build action using connection to Gradle distribution 'https://services.gradle.org/distributions/gradle-7.4.2-bin.zip'.
org.gradle.tooling.GradleConnectionException: Could not run phased build action using connection to Gradle distribution 'https://services.gradle.org/distributions/gradle-7.4.2-bin.zip'.
	at org.gradle.tooling.internal.consumer.ExceptionTransformer.transform(ExceptionTransformer.java:55)
	at org.gradle.tooling.internal.consumer.ExceptionTransformer.transform(ExceptionTransformer.java:29)
	at org.gradle.tooling.internal.consumer.ResultHandlerAdapter.onFailure(ResultHandlerAdapter.java:43)
	at org.gradle.tooling.internal.consumer.async.DefaultAsyncConsumerActionExecutor$1$1.run(DefaultAsyncConsumerActionExecutor.java:69)
	at org.gradle.internal.concurrent.ExecutorPolicy$CatchAndRecordFailures.onExecute(ExecutorPolicy.java:64)
	at org.gradle.internal.concurrent.ManagedExecutorImpl$1.run(ManagedExecutorImpl.java:48)
	at java.base/java.util.concurrent.ThreadPoolExecutor.runWorker(ThreadPoolExecutor.java:1136)
	at java.base/java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:635)
	at java.base/java.lang.Thread.run(Thread.java:833)
	at org.gradle.tooling.internal.consumer.BlockingResultHandler.getResult(BlockingResultHandler.java:46)
	at org.gradle.tooling.internal.consumer.DefaultPhasedBuildActionExecuter.run(DefaultPhasedBuildActionExecuter.java:63)
	at org.gradle.tooling.internal.consumer.DefaultPhasedBuildActionExecuter.run(DefaultPhasedBuildActionExecuter.java:31)
	at org.eclipse.buildship.core.internal.workspace.EclipseModelUtils.runPhasedModelQuery(EclipseModelUtils.java:111)
	at org.eclipse.buildship.core.internal.workspace.EclipseModelUtils.runTasksAndQueryCompositeModelWithRuntimInfo(EclipseModelUtils.java:86)
	at org.eclipse.buildship.core.internal.workspace.EclipseModelUtils.runTasksAndQueryModels(EclipseModelUtils.java:60)
	at org.eclipse.buildship.core.internal.workspace.DefaultModelProvider.lambda$fetchEclipseProjectAndRunSyncTasks$4(DefaultModelProvider.java:75)
	at org.eclipse.buildship.core.internal.DefaultGradleBuild$GradleConnectionOperation.runInToolingApi(DefaultGradleBuild.java:329)
	at org.eclipse.buildship.core.internal.operation.DefaultToolingApiOperationManager$WorkspaceRunnableAdapter.run(DefaultToolingApiOperationManager.java:58)
	at org.eclipse.core.internal.resources.Workspace.run(Workspace.java:2380)
	at org.eclipse.core.internal.resources.Workspace.run(Workspace.java:2405)
	at org.eclipse.buildship.core.internal.operation.DefaultToolingApiOperationManager.run(DefaultToolingApiOperationManager.java:39)
	at org.eclipse.buildship.core.internal.DefaultGradleBuild.withConnection(DefaultGradleBuild.java:122)
	at org.eclipse.buildship.core.internal.workspace.DefaultModelProvider.lambda$fetchEclipseProjectAndRunSyncTasks$5(DefaultModelProvider.java:75)
	at com.google.common.cache.LocalCache$LocalManualCache$1.load(LocalCache.java:4853)
	at com.google.common.cache.LocalCache$LoadingValueReference.loadFuture(LocalCache.java:3529)
	at com.google.common.cache.LocalCache$Segment.loadSync(LocalCache.java:2278)
	at com.google.common.cache.LocalCache$Segment.lockedGetOrLoad(LocalCache.java:2155)
	at com.google.common.cache.LocalCache$Segment.get(LocalCache.java:2045)
	at com.google.common.cache.LocalCache.get(LocalCache.java:3951)
	at com.google.common.cache.LocalCache$LocalManualCache.get(LocalCache.java:4848)
	at org.eclipse.buildship.core.internal.workspace.DefaultModelProvider.getFromCache(DefaultModelProvider.java:98)
	at org.eclipse.buildship.core.internal.workspace.DefaultModelProvider.executeOperation(DefaultModelProvider.java:90)
	at org.eclipse.buildship.core.internal.workspace.DefaultModelProvider.fetchEclipseProjectAndRunSyncTasks(DefaultModelProvider.java:72)
	at org.eclipse.buildship.core.internal.DefaultGradleBuild$SynchronizeOperation.runInToolingApi(DefaultGradleBuild.java:226)
	at org.eclipse.buildship.core.internal.operation.DefaultToolingApiOperationManager$WorkspaceRunnableAdapter.run(DefaultToolingApiOperationManager.java:58)
	at org.eclipse.core.internal.resources.Workspace.run(Workspace.java:2380)
	at org.eclipse.core.internal.resources.Workspace.run(Workspace.java:2405)
	at org.eclipse.buildship.core.internal.operation.DefaultToolingApiOperationManager.run(DefaultToolingApiOperationManager.java:39)
	at org.eclipse.buildship.core.internal.DefaultGradleBuild$SynchronizeOperation.run(DefaultGradleBuild.java:192)
	at org.eclipse.buildship.core.internal.DefaultGradleBuild.synchronize(DefaultGradleBuild.java:100)
	at org.eclipse.buildship.core.internal.DefaultGradleBuild.synchronize(DefaultGradleBuild.java:86)
	at org.eclipse.jdt.ls.core.internal.managers.GradleProjectImporter.startSynchronization(GradleProjectImporter.java:401)
	at org.eclipse.jdt.ls.core.internal.managers.GradleProjectImporter.importDir(GradleProjectImporter.java:289)
	at org.eclipse.jdt.ls.core.internal.managers.GradleProjectImporter.importToWorkspace(GradleProjectImporter.java:205)
	at org.eclipse.jdt.ls.core.internal.managers.ProjectsManager.importProjects(ProjectsManager.java:148)
	at org.eclipse.jdt.ls.core.internal.managers.ProjectsManager.initializeProjects(ProjectsManager.java:110)
	at org.eclipse.jdt.ls.core.internal.handlers.InitHandler$1.runInWorkspace(InitHandler.java:244)
	at org.eclipse.core.internal.resources.InternalWorkspaceJob.run(InternalWorkspaceJob.java:43)
	at org.eclipse.core.internal.jobs.Worker.run(Worker.java:63)
Caused by: org.gradle.api.GradleException: Unable to start the daemon process.
This problem might be caused by incorrect configuration of the daemon.
For example, an unrecognized jvm option is used.
Please refer to the User Manual chapter on the daemon at https://docs.gradle.org/7.4.2/userguide/gradle_daemon.html
Process command line: /Users/inonit/.inonit/tool/vscode/jdk/Contents/Home/bin/java -XX:MaxPermSize=512m -XX:+HeapDumpOnOutOfMemoryError --add-opens java.base/java.util=ALL-UNNAMED --add-opens java.base/java.lang=ALL-UNNAMED --add-opens java.base/java.lang.invoke=ALL-UNNAMED --add-opens java.base/java.util=ALL-UNNAMED --add-opens java.prefs/java.util.prefs=ALL-UNNAMED --add-opens java.prefs/java.util.prefs=ALL-UNNAMED --add-opens java.base/java.nio.charset=ALL-UNNAMED --add-opens java.base/java.net=ALL-UNNAMED --add-opens java.base/java.util.concurrent.atomic=ALL-UNNAMED -Xmx2048M -Dfile.encoding=utf8 -Duser.country=US -Duser.language=en -Duser.variant -cp /Users/inonit/.gradle/wrapper/dists/gradle-7.4.2-bin/48ivgl02cpt2ed3fh9dbalvx8/gradle-7.4.2/lib/gradle-launcher-7.4.2.jar org.gradle.launcher.daemon.bootstrap.GradleDaemon 7.4.2
Please read the following process output to find out more:
-----------------------
Unrecognized VM option 'MaxPermSize=512m'
Error: Could not create the Java Virtual Machine.
Error: A fatal exception has occurred. Program will exit.

	at org.gradle.launcher.daemon.client.DaemonGreeter.parseDaemonOutput(DaemonGreeter.java:38)
	at org.gradle.launcher.daemon.client.DefaultDaemonStarter.startProcess(DefaultDaemonStarter.java:181)
	at org.gradle.launcher.daemon.client.DefaultDaemonStarter.startDaemon(DefaultDaemonStarter.java:137)
	at org.gradle.launcher.daemon.client.DefaultDaemonConnector.doStartDaemon(DefaultDaemonConnector.java:222)
	at org.gradle.launcher.daemon.client.DefaultDaemonConnector.startDaemon(DefaultDaemonConnector.java:216)
	at org.gradle.launcher.daemon.client.DaemonClient.execute(DaemonClient.java:164)
	at org.gradle.launcher.daemon.client.DaemonClient.execute(DaemonClient.java:99)
	at org.gradle.tooling.internal.provider.DaemonBuildActionExecuter.execute(DaemonBuildActionExecuter.java:44)
	at org.gradle.tooling.internal.provider.DaemonBuildActionExecuter.execute(DaemonBuildActionExecuter.java:30)
	at org.gradle.tooling.internal.provider.LoggingBridgingBuildActionExecuter.execute(LoggingBridgingBuildActionExecuter.java:60)
	at org.gradle.tooling.internal.provider.LoggingBridgingBuildActionExecuter.execute(LoggingBridgingBuildActionExecuter.java:37)
	at org.gradle.tooling.internal.provider.ProviderConnection.run(ProviderConnection.java:222)
	at org.gradle.tooling.internal.provider.ProviderConnection.runPhasedAction(ProviderConnection.java:183)
	at org.gradle.tooling.internal.provider.DefaultConnection.run(DefaultConnection.java:245)
	at org.gradle.tooling.internal.consumer.connection.PhasedActionAwareConsumerConnection.run(PhasedActionAwareConsumerConnection.java:56)
	at org.gradle.tooling.internal.consumer.connection.ParameterValidatingConsumerConnection.run(ParameterValidatingConsumerConnection.java:62)
	at org.gradle.tooling.internal.consumer.DefaultPhasedBuildActionExecuter$1.run(DefaultPhasedBuildActionExecuter.java:78)
	at org.gradle.tooling.internal.consumer.DefaultPhasedBuildActionExecuter$1.run(DefaultPhasedBuildActionExecuter.java:70)
	at org.gradle.tooling.internal.consumer.connection.LazyConsumerActionExecutor.run(LazyConsumerActionExecutor.java:143)
	at org.gradle.tooling.internal.consumer.connection.CancellableConsumerActionExecutor.run(CancellableConsumerActionExecutor.java:45)
	at org.gradle.tooling.internal.consumer.connection.ProgressLoggingConsumerActionExecutor.run(ProgressLoggingConsumerActionExecutor.java:61)
	at org.gradle.tooling.internal.consumer.connection.RethrowingErrorsConsumerActionExecutor.run(RethrowingErrorsConsumerActionExecutor.java:38)
	at org.gradle.tooling.internal.consumer.async.DefaultAsyncConsumerActionExecutor$1$1.run(DefaultAsyncConsumerActionExecutor.java:67)
	at org.gradle.internal.concurrent.ExecutorPolicy$CatchAndRecordFailures.onExecute(ExecutorPolicy.java:64)
	at org.gradle.internal.concurrent.ManagedExecutorImpl$1.run(ManagedExecutorImpl.java:48)
	at java.base/java.util.concurrent.ThreadPoolExecutor.runWorker(ThreadPoolExecutor.java:1136)
	at java.base/java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:635)
	at java.base/java.lang.Thread.run(Thread.java:833)

Sample project:
https://github.com/davidpcaldwell/slime

リンクされたslimeサンプルプロジェクトをJava 17で使用し、traceで指定されたGradle同期パスを、GradleProjectImporterとdaemonコマンドから調査します。失敗を再現し、廃止されたVMオプションが起動構成に入る箇所を特定し、Java 17エラーなしでプロジェクトが正常にインポートされることを確認します。