This issue occurred because in the project run configuration in the arguments there is an extra or old package name appended before the original package name so once it is removed it will be works fine.
In Eclipse "Run As" and select "Run Configurations" at the sub-menu select "Arguments" tab and modify the package name at the end of the argument by removing the existing package name give the package name of your project where the gwt.xml present. once done run it
Eg: 1
Below is the last sample project I have been created.
[-noprecompile, -port, 9876, -sourceLevel, 1.8, -bindAddress, 127.0.0.1, -launcherDir, D:\eclipse-workspace\Sample-Porject\war, -logLevel, INFO, -style, OBFUSCATED, com.gwt.sample.Sample_Porject]
Eg: 2
Then I again created new sample package but when I run it It showed an error and it looked like below
[-noprecompile, -port, 9876, -sourceLevel, 1.8, -bindAddress, 127.0.0.1, -launcherDir, D:\eclipse-workspace\New-Project\war, -logLevel, INFO, -style, OBFUSCATED, com.gwt.sample.Sample_Project, com.domain.learn.project.New_Project]
Modification
In Eg: 2 the bold part is the old project package name I created it need to be removed then the project will run fine. After removing it It look like this
[-noprecompile, -port, 9876, -sourceLevel, 1.8, -bindAddress, 127.0.0.1, -launcherDir, D:\eclipse-workspace\New-Project\war, -logLevel, INFO, -style, OBFUSCATED, com.domain.learn.project.New_Project]