Multi-project final war deploying on tomcat

I am having the following structure:

     ----- Project1
     ----- Project2
    ------ WebAppStaging

The build.gradle of WebAppStaging is as below:

apply plugin: 'war'
apply plugin: 'eclipse-wtp'

war {
    baseName = 'MyApp'
    webAppDirName = 'src/webapp'

//Ensure we copy all the required files to the WebAppStaging before creating war file

dependencies {
    implementation project(':Project1')
    implementation project(':Project2')
    providedCompile 'javax.servlet:javax.servlet-api:3.1.0'

//Stop eclipse trying to find java source in the WebAppStaging project.
sourceSets {
    main {
        java.srcDirs = []

eclipse {
    wtp {
        facet {
            facet name: "jst.web", version: "2.5"       // Dynamic Web Application
            facet name: "jst.jsf", version: "1.1"       // Java Server Faces

This successfully generates the WAR.

I create a new Tomcat v8.5 server in Eclipse and add the WAR and start Tomcat.

I get the following error:

Caused by: java.lang.ClassNotFoundException: javax.servlet.ServletContextListener
at java.lang.ClassLoader.loadClass(
at sun.misc.Launcher$AppClassLoader.loadClass(
at java.lang.ClassLoader.loadClass(
... 31 more

Doing a ctrl + shift + T on javax.servlet.ServletContextListener shows that the class is in Jar file servlet-api-3.1.0.jar

When I explode the WAR and see WEB_INF/lib directory, I do not see this jar in it. I do see, tomcat-servlet-api-8.5.35.jar however. I believe it is coming from the following dependency in Project2:

implementation 'org.apache.tomcat:tomcat-catalina:8.5.35'

How do I make this error go away during Tomcat start ?

I did do “Open Launch Configuration” on the server and added all the projects under UserEntries.

What am I missing?