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Currently the Indigo repository has version of the p2 discovery bundles that will not work with 3.7M5 builds. The p2 discovery bundle does not have a tight version range allowing it to resolve on a recent p2 version which is incompatible.
It appears the Indigo repository has the updated m2e repository. This may still be an issue in some cases as the version ranges aren't locked.
Moved to https://github.com/eclipse-m2e/m2e-core/issues/