With old/classic DevMode -noserver there is no jetty started at all so it did not matter if you have a jetty-all-9.2.10.jar on classpath or not. However with GWT 2.8 when executing DevMode -noserver the SuperDevMode CodeServer will be started which uses its own embedded jetty server/library. So now you have two jetty libraries on class path with different versions and thats why you get the above error: a class file from a wrong jetty version has been loaded.--
So yes, without that extra jetty library on your classpath would have just worked ;-)
You can fix your issue by removing any server side library from your DevMode launch configuration. You could also create a launch configuration for the SuperDevMode code server directly because DevMode -noserver is the same as starting the main class CodeServer. The parameters used to launch CodeServer are in your first post (Runing CodeServer with parameters:....).
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