I have the newly installed Java 8 update 101 and when I run a forge modded minecraft server a box pops up saying, "SevenCommons requires Java 8 to be installed. Please install the latest Java 8 appropriate for your System from java.com/download. Thank you. The game will exit now." I have no idea what the issue is considering I have Java 8 installed and have now reinstalled it multiple times trying to get it to work...

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Are you using OS X / macOS? If so, please refer to this tutorial.