This problem is related to the type of Eclipse install that you select. The new installer can make it confusing and the Connect IQ docs are now incorrect. It is a requirement that you install the Eclipse for Java Developers version. This will correctly identify your JRE and give you the option to select another one if required. Unfortunately, the Connect IQ docs seem to suggest you can install any version, which used to be the case, but is no longer correct. Installing the the C/C++ version seems sensible, because the language we are developing is called Monkey C, but in fact it has nothing to do with C and its compiler is written in Java. Hope this helps someone, as it took me a while to figure this out.
Not sure if this is related, i had a similar error, it turned out to be related to 32 vs 64 bit versions of JRE and it needing to match the eclipse # of bits. In the end i have both 32 and 64 bit (x86 and x86_64) installed to avoid issue. I think the error message we similar to what is described here. Not a very informative error message in this case.
Thank you! I initially downloaded the C/C++ version (for the very reason you had mentioned) and got an error message. I switched to the Java Developers version and it works!