[attach a sample project reproducing the error]
[10.junit.zip](https://github.com/Microsoft/vscode-java-debug/files/1481521/10.junit.zip)

I have the same after updating to VSCode 1.18.1. I downgraded to VSCode 1.18.0, but am still experiencing the issue. My environment:
macOS Sierra: 10.12.6
VSCode: 1.18.1 and 1.18.0 (did not see the issue when on 1.18.0 prior to upgrade)
VSCode extensions:
redhat.java: 0.14.0
vscjava.vscode-java-debug: 0.3.1
java -version
java version "1.8.0_144"
Java(TM) SE Runtime Environment (build 1.8.0_144-b01)
Java HotSpot(TM) 64-Bit Server VM (build 25.144-b01, mixed mode)
No idea why, but this fixed it for me.
rm -rf ~/Library/Application\ Support/Code/User/workspaceStorage/This is working with VS Code 1.18.1.
Reproduced this bug on my windows 10 machine.
I enabled the language server in debug mode, and found Build workspace command would get problem marker as follows:
[Marker [on: /10.junit, id: 3, type: org.eclipse.buildship.core.gradleprojectconfigurationmarker, attributes: [message: Missing Gradle project configuration folder: .settings, severity: 2], created: 11/20/17 10:50 AM]]
The java debugger just shows Build failed, please fix build error first., but doesn't show the problems on VSCode PROBLEMS view.
@ansyral Refer to the eclipse behavior, if there are problems in workspace, should pop up a message box to allow user to Proceed or Cancel the debugging operation instead of Just failed. Besides, should show the error information in VSCode PROBLEMS view.
@testforstephen How do you enable the language server in debug mode ? I have the same error on my linux box. When i open up my project using eclipse i don't get any errors
@GrubbyHalo There are two ways to launch language server in debug mode.
development mode, if so, it will start with debug port localhost:1044 enabled.so if i run java debugger in extension development mode, the language server will be in debug mode too.

You can download language server and java debug server source code from github, and attach to 1044 port to debug the extension code.
C:\Users\jinbwan\.vscode\extensions\redhat.java-0.14.0\out\src\javaServerStarter.js, and modify const DEBUG = (typeof v8debug === 'object') || startedInDebugMode(); to const DEBUG = true;. Restart VSCode.Well this is bizarre. I fired up the extension in development mode and got the same error i got above while trying to debug it. No other meaningful messages. I then closed the extension dev host and on a whim removed the eclipse generated folders in my workspace (I used eclipse for this project before trying vscode) and tried debugging the project again and it worked! no error messages. I thought that maybe the eclipse generated folders might be responsible in some way for the errors so to test the theory i put them back again, but still got no errors! So now i am not sure what fixed it.
@GrubbyHalo Refer to https://github.com/Microsoft/vscode-java-debug/issues/170, @wokhan provides a workaround, that should work.
@testforstephen In fact the workaround I reintroduced was already there in the previous version of the extension (0.3.0), and has been "removed" (i.e. uncommented) by @andxu for 0.3.1 when RedHat Java support extension was upgraded to 0.14, so I guess there was a good reason for this.
On windows 10 I solved it like this:
My version is 1.19.3
Most helpful comment
No idea why, but this fixed it for me.
rm -rf ~/Library/Application\ Support/Code/User/workspaceStorage/This is working with VS Code 1.18.1.