Projects no longer available after RHPAM/RHDM 7.4.1 -> 7.5.0 upgrade

It seems we have an issue with migrating existing projects (.niogit)
from 7.4.1 -> 7.5.0.

Steps:

1) Start RHPAM/DM 7.4.1 and create any sample project
2) upgrade to RHPAM/DM 7.5.0
3) Restart the server, the project is no longer available

The same can also be reproduced when manually copying the .niogit folder
from the 7.4.1 installation to a new 7.5.0 server (so it does not seem
to be related to the update tool itself).

The server startup shows the following error:

11:26:25,373 ERROR [org.jboss.as.ejb3.invocation] (Thread-124)
WFLYEJB0034: EJB Invocation failed on component
IOWatchServiceExecutorImpl for method public abstract void
org.uberfire.backend.server.io.watch.IOWatchServiceExecutor.execute(org.uberfire.java.nio.file.WatchKey,org.uberfire.backend.server.util.Filter):
javax.ejb.EJBException: java.lang.IllegalArgumentException: Parameter
named 'path' should be not null!