elasticsearch 2.1.0 and "Unable to get effective rights from ACL: Overlapped I/O operation is in progress" error

When starting elasticsearch 2.1.0 on Windows 7 I got the following error below:

Likely root cause: java.io.IOException: Unable to get effective rights from ACL: Overlapped I/O operation is in progress.

        at sun.nio.fs.WindowsFileSystemProvider.getEffectiveAccess(WindowsFileSystemProvider.java:344)
        at sun.nio.fs.WindowsFileSystemProvider.checkAccess(WindowsFileSystemProvider.java:397)
        at org.elasticsearch.bootstrap.Security.ensureDirectoryExists(Security.java:246)
        at org.elasticsearch.bootstrap.Security.addPath(Security.java:227)
        at org.elasticsearch.bootstrap.Security.addFilePermissions(Security.java:191)
        at org.elasticsearch.bootstrap.Security.createPermissions(Security.java:184)
        at org.elasticsearch.bootstrap.Security.configure(Security.java:105)
        at org.elasticsearch.bootstrap.Bootstrap.setupSecurity(Bootstrap.java:196)
        at org.elasticsearch.bootstrap.Bootstrap.setup(Bootstrap.java:167)
        at org.elasticsearch.bootstrap.Bootstrap.init(Bootstrap.java:285)
        at org.elasticsearch.bootstrap.Elasticsearch.main(Elasticsearch.java:35)

When I checked the java version being used I found it was using jdk1.7.0_21

echo %JAVA_HOME%

Upgrading to jdk1.8.0_65 resolved the issue