You have gwt-dev.jar from GWT 2.0.3 and GWT 2.7 on classpath and GWT 2.0.3 is first. So GWT 2.0.3 is used during your compilation and it does not know the "type" attribute on the <module> element in com.google.gwt.core.CompilerParameters.gwt.xml from GWT 2.7.--
Fix your classpath / dependencies.
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