PATH, CLASSPATH and JAVA_HOME are 3 variables, just saying this because from your post it seems like you want to set combined name.
If you run "gradlew SetupDecompWorkspace -info" it should say "starting deamon process:" with about 4 more lines of things behind that, if you read just a bit to the right you should see "deamonArgs:" the very first thing behind that should be the path to where you have the latest JDK was.
From that you should be able to tell if its getting the correct version, I am currently using version 1.8.0_161, was using 1.8.0_132 before which was causing the problem.
If it is not the correct one, you might want to check those 3 environment variables to see if one is pointing to the wrong thing.
You can pause the scrolling and execution of the CMD window with the pause/break button if its going to fast to read.