VSCode Java doesn't handle .classpath files properly

Environment

• Operating System: Windows
• JDK version: 1.8.0_171
• Visual Studio Code version: 1.25.1
• Java extension version: 0.29.0

Steps To Reproduce

1. Copy, write, or otherwise create an Eclipse-style .classpath file, specifying a src directory.
2. Create an empty foo.java file in that directory

Current Result

Popup: foo.java isn't on the classpath.

Expected Result

No popup, working go-to-definition and similar project handling.

Additional Information

It is not entirely clear from the website that 'More information' leads to what precisely needs to be copied for the vscode-java to properly build the classpath, so if the answer turns out to be "you need more than just the .classpath", the issue just changes to "the documentation on 'Classpath is incomplete' does not provide sufficient information to actually resolve the issue."

(Also, note that the error is different from that one given when there is no classpath present. vscode-java clearly sees that there's a file there, but isn't reading it correctly.)

bugrepro.zip

Start with the attached bugrepro.zip and reproduce the behavior using the Eclipse-style .classpath file, a src directory, and empty foo.java. Inspect how the VSCode Java extension handles the .classpath and the “Classpath is incomplete” information; done means the popup no longer appears and go-to-definition works for the project.