Unable to import gradle project in new eclipse - eclipse

Question

Recently i have downloaded eclipse 2021-06 and when i try to import my older projects running on gradle 4.6 it fails saying could not create daemon context.
What went wrong:
Could not create service of type DaemonContext using DaemonServices.createDaemonContext().
I have set the Java version to be Java 8 as well but still not working.
Cleared all .m2 folder and rebuild the project but still the same issue.
Detailed stack
org.gradle.tooling.GradleConnectionException: Could not fetch model of type 'GradleBuild' using connection to Gradle distribution 'https://<artifactory-server>/name-gradle-Wrapper-4.6.0-SNAPSHOT.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$1.run(ManagedExecutorImpl.java:48)
at java.base/java.util.concurrent.ThreadPoolExecutor.runWorker(ThreadPoolExecutor.java:1130)
at java.base/java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:630)
at org.gradle.internal.concurrent.ThreadFactoryImpl$ManagedThreadRunnable.run(ThreadFactoryImpl.java:56)
at java.base/java.lang.Thread.run(Thread.java:831)
at org.gradle.tooling.internal.consumer.BlockingResultHandler.getResult(BlockingResultHandler.java:46)
at org.gradle.tooling.internal.consumer.DefaultModelBuilder.get(DefaultModelBuilder.java:51)
at org.eclipse.buildship.core.internal.util.gradle.CompatProjectConnection$CompatModelBuilder.get(CompatProjectConnection.java:272)
at org.eclipse.buildship.core.internal.util.gradle.IdeAttachedProjectConnection.getModel(IdeAttachedProjectConnection.java:86)
at org.eclipse.buildship.core.internal.workspace.DefaultModelProvider.queryModel(DefaultModelProvider.java:115)
at org.eclipse.buildship.core.internal.workspace.DefaultModelProvider.lambda$null$0(DefaultModelProvider.java:50)
at org.eclipse.buildship.core.internal.DefaultGradleBuild$GradleConnectionOperation.runInToolingApi(DefaultGradleBuild.java:329)
at org.eclipse.buildship.core.internal.operation.DefaultToolingApiOperationManager$WorkspaceRunnableAdapter.run(DefaultToolingApiOperationManager.java:58)
at org.eclipse.core.internal.resources.Workspace.run(Workspace.java:2313)
at org.eclipse.core.internal.resources.Workspace.run(Workspace.java:2338)
at org.eclipse.buildship.core.internal.operation.DefaultToolingApiOperationManager.run(DefaultToolingApiOperationManager.java:39)
at org.eclipse.buildship.core.internal.DefaultGradleBuild.withConnection(DefaultGradleBuild.java:122)
at org.eclipse.buildship.core.internal.workspace.DefaultModelProvider.lambda$fetchModel$1(DefaultModelProvider.java:49)
at com.google.common.cache.LocalCache$LocalManualCache$1.load(LocalCache.java:4878)
at com.google.common.cache.LocalCache$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$Segment.get(LocalCache.java:2045)
at com.google.common.cache.LocalCache.get(LocalCache.java:3953)
at com.google.common.cache.LocalCache$LocalManualCache.get(LocalCache.java:4873)
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.fetchModel(DefaultModelProvider.java:48)
at org.eclipse.buildship.ui.internal.wizard.project.ProjectPreviewWizardPage.fetchGradleBuildStructure(ProjectPreviewWizardPage.java:456)
at org.eclipse.buildship.ui.internal.wizard.project.ProjectPreviewWizardPage.access$700(ProjectPreviewWizardPage.java:78)
at org.eclipse.buildship.ui.internal.wizard.project.ProjectPreviewWizardPage$UpdatePreviewOperation.runInToolingApi(ProjectPreviewWizardPage.java:477)
at org.eclipse.buildship.core.internal.operation.ToolingApiOperations$1.runInToolingApi(ToolingApiOperations.java:60)
at org.eclipse.buildship.core.internal.operation.DefaultToolingApiOperationManager$WorkspaceRunnableAdapter.run(DefaultToolingApiOperationManager.java:58)
at org.eclipse.core.internal.resources.Workspace.run(Workspace.java:2313)
at org.eclipse.core.internal.resources.Workspace.run(Workspace.java:2338)
at org.eclipse.buildship.core.internal.operation.DefaultToolingApiOperationManager.run(DefaultToolingApiOperationManager.java:39)
at org.eclipse.buildship.core.internal.operation.DefaultToolingApiOperationManager.run(DefaultToolingApiOperationManager.java:33)
at org.eclipse.buildship.ui.internal.wizard.project.ProjectPreviewWizardPage$4.run(ProjectPreviewWizardPage.java:311)
at org.eclipse.jface.operation.ModalContext$ModalContextThread.run(ModalContext.java:122)
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 guide chapter on the daemon at https://docs.gradle.org/4.6/userguide/gradle_daemon.html
Please read the following process output to find out more:
-----------------------
FAILURE: Build failed with an exception.
* What went wrong:
Could not create service of type DaemonContext using DaemonServices.createDaemonContext().
* Try:
Run with --stacktrace option to get the stack trace. Run with --info or --debug option to get more log output. Run with --scan to get full insights.
* Get more help at https://help.gradle.org
at org.gradle.launcher.daemon.bootstrap.DaemonGreeter.parseDaemonOutput(DaemonGreeter.java:34)
at org.gradle.launcher.daemon.client.DefaultDaemonStarter.startProcess(DefaultDaemonStarter.java:161)
at org.gradle.launcher.daemon.client.DefaultDaemonStarter.startDaemon(DefaultDaemonStarter.java:137)
at org.gradle.launcher.daemon.client.DefaultDaemonConnector.doStartDaemon(DefaultDaemonConnector.java:210)
at org.gradle.launcher.daemon.client.DefaultDaemonConnector.startDaemon(DefaultDaemonConnector.java:204)
at org.gradle.launcher.daemon.client.DefaultDaemonConnector.connect(DefaultDaemonConnector.java:128)
at org.gradle.launcher.daemon.client.DaemonClient.execute(DaemonClient.java:138)
at org.gradle.launcher.daemon.client.DaemonClient.execute(DaemonClient.java:92)
at org.gradle.tooling.internal.provider.DaemonBuildActionExecuter.execute(DaemonBuildActionExecuter.java:60)
at org.gradle.tooling.internal.provider.DaemonBuildActionExecuter.execute(DaemonBuildActionExecuter.java:41)
at org.gradle.tooling.internal.provider.LoggingBridgingBuildActionExecuter.execute(LoggingBridgingBuildActionExecuter.java:60)
at org.gradle.tooling.internal.provider.LoggingBridgingBuildActionExecuter.execute(LoggingBridgingBuildActionExecuter.java:34)
at org.gradle.tooling.internal.provider.ProviderConnection.run(ProviderConnection.java:156)
at org.gradle.tooling.internal.provider.ProviderConnection.run(ProviderConnection.java:122)
at org.gradle.tooling.internal.provider.DefaultConnection.getModel(DefaultConnection.java:204)
at org.gradle.tooling.internal.consumer.connection.CancellableModelBuilderBackedModelProducer.produceModel(CancellableModelBuilderBackedModelProducer.java:54)
at org.gradle.tooling.internal.consumer.connection.PluginClasspathInjectionSupportedCheckModelProducer.produceModel(PluginClasspathInjectionSupportedCheckModelProducer.java:38)
at org.gradle.tooling.internal.consumer.connection.AbstractConsumerConnection.run(AbstractConsumerConnection.java:64)
at org.gradle.tooling.internal.consumer.connection.ParameterValidatingConsumerConnection.run(ParameterValidatingConsumerConnection.java:49)
at org.gradle.tooling.internal.consumer.DefaultModelBuilder$1.run(DefaultModelBuilder.java:64)
at org.gradle.tooling.internal.consumer.connection.LazyConsumerActionExecutor.run(LazyConsumerActionExecutor.java:144)
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$1.run(ManagedExecutorImpl.java:48)
at java.base/java.util.concurrent.ThreadPoolExecutor.runWorker(ThreadPoolExecutor.java:1130)
at java.base/java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:630)
at org.gradle.internal.concurrent.ThreadFactoryImpl$ManagedThreadRunnable.run(ThreadFactoryImpl.java:56)
at java.base/java.lang.Thread.run(Thread.java:831)