URI exception, URI is not hierarchical, when bootstrapping on WebLogic+Windows

The following exception is being noticed on WebLogic 12c / Windows environment when starting up.

INFO: Initializing content from: zip:C:/weblogic12c/user_projects/domains/intranet/servers/AdminServer/tmp/_WL_user/hippo-intranet/42900e/war/WEB-INF/lib/gallerypicker-1.13.00.jar!/hippoecm-extension.xml to /hippo:configuration/hippo:temporary
May 20, 2014 10:57:29 AM org.hippoecm.repository.RepositoryServlet init
SEVERE: Error while setting up JCR repository:
javax.jcr.RepositoryException: Invalid data: java.lang.IllegalArgumentException:
URI is not hierarchical
at org.hippoecm.repository.HippoRepositoryFactory.getHippoRepository(Hip
poRepositoryFactory.java:189)
at org.hippoecm.repository.RepositoryServlet.init(RepositoryServlet.java
...
Caused by: java.lang.IllegalArgumentException: URI is not hierarchical
at java.io.File.<init>(File.java:418)
at org.hippoecm.repository.impl.InitializationProcessorImpl.initializeNo
decontent(InitializationProcessorImpl.java:958)
...