JBoss Fuse 6.2 started in Windows 7 encountered MalformedURLException

Issue

On a clean installation on windows 7(for development) I started fuse with fuse.bat after configuring jdk8.
I see this ERROR in the fuse.log file:

11:55:51,630 | ERROR | t-133\bin\..\etc | fileinstall                      | 8 - org.apache.felix.fileinstall - 3.4.2 | Failed to install artifact: C:\jboss-fuse-6.2.0.redhat-133\etc\auth
java.net.MalformedURLException: Invalid syntax for instruction [Bundle-SymbolicName=C:\jboss-fuse]. Take a look at http://www.aqute.biz/Code/Bnd.
    at org.ops4j.pax.swissbox.bnd.BndUtils.parseInstructions(BndUtils.java:302)[2:org.ops4j.pax.url.wrap:2.4.0]
    at org.ops4j.pax.url.wrap.internal.Parser.<init>(Parser.java:116)[2:org.ops4j.pax.url.wrap:2.4.0]
    at org.ops4j.pax.url.wrap.internal.Connection.<init>(Connection.java:67)[2:org.ops4j.pax.url.wrap:2.4.0]
    at org.ops4j.pax.url.wrap.internal.Activator$1.createConnection(Activator.java:59)[2:org.ops4j.pax.url.wrap:2.4.0]
    at org.ops4j.pax.url.wrap.internal.Activator$1.createConnection(Activator.java:49)[2:org.ops4j.pax.url.wrap:2.4.0]
    at org.ops4j.pax.url.commons.handler.HandlerActivator$Handler.openConnection(HandlerActivator.java:222)[2:org.ops4j.pax.url.wrap:2.4.0]
    at org.apache.felix.framework.URLHandlersStreamHandlerProxy.openConnection(URLHandlersStreamHandlerProxy.java:271)[org.apache.felix.framework-4.4.1.jar:]
    at java.net.URL.openConnection(URL.java:972)[:1.8.0_40]
    at java.net.URL.openStream(URL.java:1038)[:1.8.0_40]
    at org.apache.felix.fileinstall.internal.DirectoryWatcher.install(DirectoryWatcher.java:943)[8:org.apache.felix.fileinstall:3.4.2]
    at org.apache.felix.fileinstall.internal.DirectoryWatcher.install(DirectoryWatcher.java:865)[8:org.apache.felix.fileinstall:3.4.2]
    at org.apache.felix.fileinstall.internal.DirectoryWatcher.doProcess(DirectoryWatcher.java:482)[8:org.apache.felix.fileinstall:3.4.2]
    at org.apache.felix.fileinstall.internal.DirectoryWatcher.process(DirectoryWatcher.java:358)[8:org.apache.felix.fileinstall:3.4.2]
    at org.apache.felix.fileinstall.internal.DirectoryWatcher.run(DirectoryWatcher.java:310)[8:org.apache.felix.fileinstall:3.4.2]