FULL PRODUCT VERSION :
Verified affected versions
export JAVA_HOME=/cygdrive/c/Program\ Files/Java/jdk1.8.0_111/
export JAVA_HOME=/cygdrive/c/Program\ Files/Java/jdk1.8.0_112/

Verified unaffected versions
export JAVA_HOME=/cygdrive/c/Program\ Files/Java/jdk1.8.0_05
export JAVA_HOME=/cygdrive/c/Program\ Files/Java/jdk1.7.0_79


ADDITIONAL OS VERSION INFORMATION :
Windows 7 Enterprise service pack 1

EXTRA RELEVANT SYSTEM CONFIGURATION :
Running under Cygwin

A DESCRIPTION OF THE PROBLEM :
A gradle project running the gradle wrapper that needs to download dependencies from the internet via an internet proxy will fail with "HTTP/1.1 407 Proxy Authentication Required" despite valid credentials being supplied correctly




REGRESSION. Last worked in version 8u111

ADDITIONAL REGRESSION INFORMATION:
java -version
java version "1.8.0_111"
Java(TM) SE Runtime Environment (build 1.8.0_111-b14)
Java HotSpot(TM) 64-Bit Server VM (build 25.111-b14, mixed mode)

(however this is irrelevant because gradle uses what is specified by JAVA_HOME)

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
10:13 my_gradle_project → export JAVA_HOME=/cygdrive/c/Program\ Files/Java/jdk1.8.0_111/

10:13 my_gradle_project → ./gradlew build -Dhttp.proxyHost=<proxy_host> -Dhttp.proxyPort=<proxy_port> -Dhttp.proxyUser=<user> -Dhttp.proxyPassword=<password> -Dhttps.proxyHost=<proxy_host> -Dhttps.proxyPort=<proxy_port> -Dhttps.proxyUser=<user> -Dhttps.proxyPassword=<password>


EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
Downloading https://services.gradle.org/distributions/gradle-2.14.1-bin.zip
...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Unzipping C:\cygwin64\home\user\.gradle\wrapper\dists\gradle-2.14.1-bin\2r579t5wehc7ew5kc8vfqezww\gradle-2.14.1-bin.zip to C:\cygwin64\home\user\.gradle\wrapper\dists\gradle-2.14.1-bin\2r579t5wehc7ew5kc8vfqezww
Starting a new Gradle Daemon for this build (subsequent builds will be faster).

ACTUAL -
Downloading https://services.gradle.org/distributions/gradle-2.14.1-bin.zip

Exception in thread "main" java.io.IOException: Unable to tunnel through proxy. Proxy returns "HTTP/1.1 407 Proxy Authentication Required"
        at sun.net.www.protocol.http.HttpURLConnection.doTunneling(HttpURLConnection.java:2124)
        at sun.net.www.protocol.https.AbstractDelegateHttpsURLConnection.connect(AbstractDelegateHttpsURLConnection.java:183)
        at sun.net.www.protocol.http.HttpURLConnection.getInputStream0(HttpURLConnection.java:1546)
        at sun.net.www.protocol.http.HttpURLConnection.getInputStream(HttpURLConnection.java:1474)
        at sun.net.www.protocol.https.HttpsURLConnectionImpl.getInputStream(HttpsURLConnectionImpl.java:254)
        at org.gradle.wrapper.Download.downloadInternal(Download.java:60)
        at org.gradle.wrapper.Download.download(Download.java:45)
        at org.gradle.wrapper.Install$1.call(Install.java:62)
        at org.gradle.wrapper.Install$1.call(Install.java:48)
        at org.gradle.wrapper.ExclusiveFileAccessManager.access(ExclusiveFileAccessManager.java:69)
        at org.gradle.wrapper.Install.createDist(Install.java:48)
        at org.gradle.wrapper.WrapperExecutor.execute(WrapperExecutor.java:107)
        at org.gradle.wrapper.GradleWrapperMain.main(GradleWrapperMain.java:61)

REPRODUCIBILITY :
This bug can be reproduced always.

---------- BEGIN SOURCE ----------
https://github.com/philbert/gradle-jenkins-plugin
---------- END SOURCE ----------

CUSTOMER SUBMITTED WORKAROUND :
Use an older java version without the bug