Eclipse Headless Application failing with Stackoverflow error - eclipse

Question

I have built up an eclipse headless application, but while running it ends up with Stackoverflow error.
!SESSION 2020-06-24 16:24:05.556 -----------------------------------------------
eclipse.buildId=unknown
java.version=1.8.0_251
java.vendor=Oracle Corporation
BootLoader constants: OS=win32, ARCH=x86_64, WS=win32, NL=en_US
Framework arguments: -application com.headless.application indir C:\workspace\TestData
Command-line arguments: -os win32 -ws win32 -arch x86_64 -application com.headless.application -consoleLog indir C:\workspace\TestData
!ENTRY org.eclipse.osgi 4 0 2020-06-24 18:43:21.315
!MESSAGE Application error
!STACK 1
java.lang.StackOverflowError
at org.eclipse.emf.ecore.resource.impl.BinaryResourceImpl$EObjectOutputStream.saveEObject(BinaryResourceImpl.java:1236)
at org.eclipse.emf.ecore.resource.impl.BinaryResourceImpl$EObjectOutputStream.saveEObjects(BinaryResourceImpl.java:1003)
Perhaps I thought this is because of memory issues so I tried to increase the memory in eclipse.ini file:
-vmargs
-Xmx16G
-Xms3G
-Xss16M
-XX:MinHeapFreeRatio=50
-XX:MaxHeapFreeRatio=60
-XX:+UseParallelGC
But still it fails with same Stackoverflow error.
I'm running my headless eclipse application via a batch file. The content of batch file looks like this:
#echo off
start eclipse -application com.headless.application -consoleLog indir C:\workspace\TestData
So my first doubt is that whether my headless application is considering the eclipse.ini file or not? If not what are other ways to pass eclipse.ini file directly in above eclipse call?
In case if it is considering the eclipse.ini file, what other options can be tried?
Note: In case of same GUI application, it is working fine.