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[m2e-users] maven.multiModulePropertyDirectory not set

We currently have m2e feature 1.6.0.20150325-2013 installed, and are seeing the following error when we right click on a project and select "Run As -> Maven test":
 
-Dmaven.multiModuleProjectDirectory system propery is not set. Check $M2_HOME environment variable and mvn script match.

We're using the default embedded installation (3.3.1/1.6.0.20150325-2012). Is there some configuration or setup we need to change in order to make this work? We've managed to work around the problem by configuring a 3.2.5 external installation, but would prefer to use the embedded version.

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