Unable to start Method Server with error "The system cannot find the (Java) path specified" in Windchill

• Windows Service does not start after configuration error in logs:

Apache Commons Daemon procrun (1.3.4.0 64-bit) started.
Running Service 'WindchillPDM'...
Starting service...
Invalid RuntimeLib specified '..\Windchill\opt\ntservice\${env.JAVA_HOME}\bin\server\jvm.dll'
The system cannot find the path specified.
Failed to load JVM DLL '..\Windchill\opt\ntservice\${env.JAVA_HOME}\bin\server\jvm.dll', home '..\Windchill\opt\ntservice\${env.JAVA_HOME}'.
The system cannot find the path specified.
Failed creating Java '..\Windchill\opt\ntservice\${env.JAVA_HOME}\bin\server\jvm.dll'.
The system cannot find the path specified.
ServiceStart returned 1.
The system cannot find the path specified.
Run service finished.
Apache Commons Daemon procrun finished.

• Attempting to start the Windchill service results in an "Incorrect function" error
• Running "windchill.exe" from the shell in the bin directory returns "The system cannot find the path specified"
• Unable to start The Method Server from a Windchill shell with the command Windchill start or unable to start Windchill installed as a Windows Service

The system cannot find the (Java) path specified.

• The following error is observed on the Windows Console

Windows could not start on local Computer.For more information, review the System Event Log. If this is a non-Microsoft service, contact the service vendor,and refer to service-specific error code1.

• Unable to execute the xconfmanager command
• Unable to start Windchill with Windchill services and Windchill shell gives below error:

• The following error is observed in commons-daemon log present under </WT_HOME>/logs location:

[YYYY-MM-DD HH:MM:SS] [info]  [ 8492] Commons Daemon procrun (1.0.15.0 64-bit) started
[YYYY-MM-DD HH:MM:SS] [info]  [ 8492] Running 'Windchill' Service...
[YYYY-MM-DD HH:MM:SS] [info]  [ 4840] Starting service...
[YYYY-MM-DD HH:MM:SS] [error] [ 4840] Failed creating java D:\ptc\Windchill_11.1\Windchill\opt\ntservice\${env.JAVA_HOME}\jre\bin\server\jvm.dll
[YYYY-MM-DD HH:MM:SS] [error] [ 4840] The system cannot find the path specified.
[YYYY-MM-DD HH:MM:SS] [error] [ 4840] ServiceStart returned 1
[YYYY-MM-DD HH:MM:SS] [error] [ 4840] The system cannot find the path specified.
[YYYY-MM-DD HH:MM:SS] [info]  [ 8492] Run service finished.
[YYYY-MM-DD HH:MM:SS] [info]  [ 8492] Commons Daemon procrun finished