"A resource exists with a different case" exception when synchronizing Gradle project with Eclipse

Question

When importing Gradle project to eclipse using Eclipse's native buildship plugin the import fails with the following exception:

org.eclipse.buildship.core.internal.GradlePluginsRuntimeException: org.eclipse.core.internal.resources.ResourceException: A resource exists with a different case: '/gui'. at org.eclipse.buildship.core.internal.workspace.DefaultWorkspaceOperations.renameProject(DefaultWorkspaceOperations.java:361) at org.eclipse.buildship.core.internal.workspace.ProjectNameUpdater.updateProjectName(ProjectNameUpdater.java:49) at org.eclipse.buildship.core.internal.workspace.SynchronizeGradleBuildOperation.synchronizeOpenWorkspaceProject(SynchronizeGradleBuildOperation.java:159) at org.eclipse.buildship.core.internal.workspace.SynchronizeGradleBuildOperation.addExistingEclipseProjectToWorkspace(SynchronizeGradleBuildOperation.java:189) at org.eclipse.buildship.core.internal.workspace.SynchronizeGradleBuildOperation.synchronizeNonWorkspaceProject(SynchronizeGradleBuildOperation.java:177) at org.eclipse.buildship.core.internal.workspace.SynchronizeGradleBuildOperation.synchronizeGradleProjectWithWorkspaceProject(SynchronizeGradleBuildOperation.java:130) at org.eclipse.buildship.core.internal.workspace.SynchronizeGradleBuildOperation$1.run(SynchronizeGradleBuildOperation.java:85) at org.eclipse.core.internal.resources.Workspace.run(Workspace.java:2380) at org.eclipse.core.internal.resources.Workspace.run(Workspace.java:2400)

.... etc

Caused by: java.lang.Exception: A resource exists with a different case: '/gui'. at org.eclipse.core.internal.resources.ResourceException.provideStackTrace(ResourceException.java:42) at org.eclipse.core.internal.resources.ResourceException.(ResourceException.java:38)

This probably has something to do with the project Gui that I have in the directory structure. It used to work just fine for years though. Commit history does not show anything relevant (no changes to Gui project or any Gradle-related files).

Does anyone have an idea of what could be causing it or how to investigate this problem further?

Tried to install newest eclipse and import freshly checked out projects directory structure. Did not help. Renaming "Gui" project to something else or changing it to "gui" causes lots of issues with other projects which refer to it.

*Edit I found the problem:

build.gradle file in the gui project used to have the following lines:

eclipse {
    project {
        name = 'somename'
    }
}

and these lines were apparently renaming the project from Eclipse prospective to 'somename'. Removing the lines started to cause naming conflict with another project called Gui located at a different level.