I had the same problem many people had in updating the ADT plugin. So I used this procedure described here:
Error Message : This Android SDK requires Android Developer Toolkit version 22.6.1 or above
So, I checked Developer Tools and hit the next button. And it says
'Your original request has been modified. "Android DDMS" so an update will be performed instead.'
But it doesn't do an update, nor does it give me any way to do one.
(Tried to post a screencap but StackOverflow says I need a rep of at least 10)