Terminal failed for java projects

I have two cursor windows opened - one for python application and one for java.
Python is working fine. For Java - I cannot open a terminal: “The terminal process failed to launch: A native exception occurred during launch (Cannot create process, error code: 87)”
I also cannot run or debug this Java project.

I can open the same folder in vs code and everything is working fine there.

What is wrong and how I can fix it?