Eclipse Neon was freshly unzipped. A blank directory was given to it for workspace. And an Out of memory error gets displayed right after the workspace path query. The details mention "Setup Check".
In eclipse.ini we now have
-Xms1024m
-Xmx4096m
But this does not resolve the issue.
Then we tried to disable plugins through Preferences>General>Startup. It seems that disabling Oomph Setup UI causes the OOM to go away.
I am honestly not sure what Oomph does. The environment is for modifying and building a Java/Maven project that is stored in Github (EGit is to be installed). So I wonder if things will bemuch worse without this plugin. But more importantly might there be a way to fix this? It does not happen on other machines...
IBM JDK 1.8 is used.
This seems to be caused by a bug in the latest Java JDK, as stated here: https://www.eclipse.org/forums/index.php/t/1089375/