@sallyur is this a regression?

Works for me on my mac:

arguments=
auto.sync=false
build.scans.enabled=false
connection.gradle.distribution=GRADLE_DISTRIBUTION(LOCAL_INSTALLATION(/Users/fbricon/.sdkman/candidates/gradle/current))
connection.project.dir=
eclipse.preferences.version=1
gradle.user.home=/Users/fbricon/.sdkman/candidates/gradle/current
java.home=/Users/fbricon/.sdkman/candidates/java/8.0.181-oracle
jvm.arguments=
offline.mode=false
override.workspace.settings=true
show.console.view=true
show.executions.view=true

I could reproduce the issue, and it was already present in vscode-java 0.44.0: when you import the project the 1st time, the proper buildship settings are generated, as per my previous comment.
When you reopen vscode, the settings are updated twice: the 1st time with the proper settings, and a few seconds later, they're wiped out, as in @sallyur's comment, and a different gradle version is used.
My guess is we don't properly trigger the gradle update, somehow.

so more specifically the problem occurs after cleaning the server directory. The project already has local eclipse config files, this seems to confuse the import.

I believe I'm encountering this issue in my local environment. Even if I manually set the gradle distribution version in the prefs file, it gets reset for at least one of the projects in my workspace as soon as I clear the language server. Seems to be getting set to a version much newer than I have installed locally, and also much newer than the wrapper governing the rest of the workspace projects. Is there any workaround for this issue while the PR is under review?

I have the same problem.

installed gradle version 6.7 but 6.3 is used in the .gradle folder.

Extension Name: vscode-java
Extension Version: v3.5.2
OS Version: macOS Big Sur Version 11.0.1
VSCode version: 1.51.1

Describe the bug
I installed gradle 6.7 and use gradle init to create a gradle project
but in vscode, the .gradle folder contains both 6.3 and 6.7 subfolders.

If I run the gradle init command in terminal, there is only one subfoler, 6.7, in the .gradle folder

I also found in the buildOutputCleanup folder, the cache.properties file has gradle.version=6.3
where does this gradle.version property come from?

The subfolder 6.7 is created by vscode-gradle extenstion
The subfolder 6.3 is created by vscode-java extension

To Reproduce

• mkdir test && cd test
• gradle init
• code .

Expected behavior
gradle project should has no problem in vscode

Tried with 0.80.0, the problem seems has been fixed @testforstephen