Gradle 2.7 does not work with the proxy

Please help:

In the proxy environment Gradle is not able to reach out to the remote repository with the proxy configured. The following is specified in the
The first option was set to help rectify the issue. However, it did not produce any results.

The error I am getting is The target server failed to respond.

A problem occurred configuring root project ‘test’.

Could not resolve all dependencies for configuration ‘:classpath’.
Could not resolve
Required by:
Could not resolve
Could not get resource ‘’.
Could not GET ‘’.
The target server failed to respond

When I do the packet capture on the interfaces, the only traffic I see is the HTTP GET to the Repo URL with the source of ::1, the destination of ::1 and destination port of 5001. I do not see any traffic to the proxy at on port 8080.