4.15.1: Android Package Fails with "javac: invalid target release: 1.7"

I upgraded from macOS 10.12.3 to 10.12.4, from Xcode 8.2 to Xcode 8.3, rebooted, deleted the codeworks stuff (the entire ~/NVPACK directory) and reinstalled it.

And now the build succeeds. I did not change any Project Settings. I did not uninstall or reinstall any Java (still have Java 6 and 8 installed).

Note that the build does not like my JAVA_HOME variable. It complains (though still succeeds):

Unable to find a $JAVA_HOME at "/usr", continuing with system-provided Java...
    [javac] Note: Some input files use or override a deprecated API.
    [javac] Note: Recompile with -Xlint:deprecation for details.