Eclipse plugin cannot handle Maven toolchain plugin

Question

When I have the Maven toolchain plugin in my pom.xml:

<plugin>
    <groupId>org.apache.maven.plugins</groupId>
    <artifactId>maven-toolchains-plugin</artifactId>
    <version>1.1</version>
    <executions>
        <execution>
            <goals>
                <goal>toolchain</goal>
            </goals>
        </execution>
    </executions>
    <configuration>
        <toolchains>
            <jdk>
                <version>1.8</version>
                <vendor>oracle</vendor>
            </jdk>
        </toolchains>
    </configuration>
</plugin>

And I have "toolchains.xml" in "c:\user\name\.m2" folder with a definition for the Orcale 1.8 JDK, Maven works fine from the command line but Eclipse (Neon and Oxygen) reports the following error:

Cannot find matching toolchain definitions for the following toolchain types:
jdk [ vendor='oracle' version='1.8' ]
Please make sure you define the required toolchains in your ~/.m2/toolchains.xml file. (org.apache.maven.plugins:maven-toolchains-plugin:1.1:toolchain:default:validate)

org.apache.maven.plugin.MojoFailureException: Cannot find matching toolchain definitions for the following toolchain types:
jdk [ vendor='oracle' version='1.8' ]
Please make sure you define the required toolchains in your ~/.m2/toolchains.xml file.
    at org.apache.maven.plugin.toolchain.ToolchainMojo.execute(ToolchainMojo.java:110)
    at org.apache.maven.plugin.DefaultBuildPluginManager.executeMojo(DefaultBuildPluginManager.java:134)
    at org.eclipse.m2e.core.internal.embedder.MavenImpl.execute(MavenImpl.java:331)
    at org.eclipse.m2e.core.internal.embedder.MavenImpl$11.call(MavenImpl.java:1362)
    at org.eclipse.m2e.core.internal.embedder.MavenImpl$11.call(MavenImpl.java:1)
    at org.eclipse.m2e.core.internal.embedder.MavenExecutionContext.executeBare(MavenExecutionContext.java:176)
    at org.eclipse.m2e.core.internal.embedder.MavenExecutionContext.execute(MavenExecutionContext.java:112)
    at org.eclipse.m2e.core.internal.embedder.MavenImpl.execute(MavenImpl.java:1360)
    at org.eclipse.m2e.core.project.configurator.MojoExecutionBuildParticipant.build(MojoExecutionBuildParticipant.java:52)
    at org.eclipse.m2e.core.internal.builder.MavenBuilderImpl.build(MavenBuilderImpl.java:137)
    at org.eclipse.m2e.core.internal.builder.MavenBuilder$1.method(MavenBuilder.java:172)
    at org.eclipse.m2e.core.internal.builder.MavenBuilder$1.method(MavenBuilder.java:1)
    at org.eclipse.m2e.core.internal.builder.MavenBuilder$BuildMethod$1$1.call(MavenBuilder.java:115)
    at org.eclipse.m2e.core.internal.embedder.MavenExecutionContext.executeBare(MavenExecutionContext.java:176)
    at org.eclipse.m2e.core.internal.embedder.MavenExecutionContext.execute(MavenExecutionContext.java:112)
    at org.eclipse.m2e.core.internal.builder.MavenBuilder$BuildMethod$1.call(MavenBuilder.java:105)
    at org.eclipse.m2e.core.internal.embedder.MavenExecutionContext.executeBare(MavenExecutionContext.java:176)
    at org.eclipse.m2e.core.internal.embedder.MavenExecutionContext.execute(MavenExecutionContext.java:151)
    at org.eclipse.m2e.core.internal.embedder.MavenExecutionContext.execute(MavenExecutionContext.java:99)
    at org.eclipse.m2e.core.internal.builder.MavenBuilder$BuildMethod.execute(MavenBuilder.java:86)
    at org.eclipse.m2e.core.internal.builder.MavenBuilder.build(MavenBuilder.java:200)
    at org.eclipse.core.internal.events.BuildManager$2.run(BuildManager.java:735)
    at org.eclipse.core.runtime.SafeRunner.run(SafeRunner.java:42)
    at org.eclipse.core.internal.events.BuildManager.basicBuild(BuildManager.java:206)
    at org.eclipse.core.internal.events.BuildManager.basicBuild(BuildManager.java:246)
    at org.eclipse.core.internal.events.BuildManager$1.run(BuildManager.java:301)
    at org.eclipse.core.runtime.SafeRunner.run(SafeRunner.java:42)
    at org.eclipse.core.internal.events.BuildManager.basicBuild(BuildManager.java:304)
    at org.eclipse.core.internal.events.BuildManager.basicBuildLoop(BuildManager.java:360)
    at org.eclipse.core.internal.events.BuildManager.build(BuildManager.java:383)
    at org.eclipse.core.internal.events.AutoBuildJob.doBuild(AutoBuildJob.java:144)
    at org.eclipse.core.internal.events.AutoBuildJob.run(AutoBuildJob.java:235)
    at org.eclipse.core.internal.jobs.Worker.run(Worker.java:55)

Edit: Odd thing I just found, if I change the "action" in lifecycle mapping from "execute" to "ignore", then the error disappears from Eclipse:

<plugin>
    <groupId>org.eclipse.m2e</groupId>
    <artifactId>lifecycle-mapping</artifactId>
    <version>${m2e.lifecycle-mapping.version}</version>
    <configuration>
        <lifecycleMappingMetadata>
            <pluginExecutions>
                <pluginExecution>
                    <pluginExecutionFilter>
                        <groupId>org.apache.maven.plugins</groupId>
                        <artifactId>maven-toolchains-plugin</artifactId>
                        <versionRange>[0.0.0,)</versionRange>
                        <goals>
                            <goal>toolchain</goal>
                        </goals>
                    </pluginExecutionFilter>
                    <action>
                        <ignore/> <!-- Changed from execute to ignore -->
                    </action>
                </pluginExecution>
            </pluginExecutions>
        </lifecycleMappingMetadata>
    </configuration>
</plugin>

But doesn't that simply mean Eclipse/m2e now ignores the toolchain? Is there some other configuration/change I need to get it to work?