Weird behavior with Pkg generate on Windows

I am using Julia 0.7.0 on Windows. When I try to activate a new project I get the following

(v0.7) pkg> generate Example
Generating project Example:
    Example\Project.toml
    Example/src/Example.jl

shell> cd Example
C:\Users\lkape\.julia\dev\Example

(v0.7) pkg> activate .

┌ Warning: `hex(n::Char, pad)` is deprecated, use `string(UInt32(n), base=16, pad=pad)` instead.
│   caller = escape(::Pkg.TOML.Parser{IOStream}, ::Int64, ::Bool) at parser.jl:588
└ @ Pkg.TOML C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\Pkg\ext\TOML\src\parser.jl:588
pkg>

pkg>

pkg> add Distributions
ERROR: Pkg.TOML.ParserError(23, 24, "unknown string escape: `\\x6c`")
Stacktrace:
 [1] parse(::IOStream) at C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\Pkg\ext\TOML\src\TOML.jl:33
 [2] read_project at C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\Pkg\src\Types.jl:434 [inlined]
 [3] #open#298(::Base.Iterators.Pairs{Union{},Union{},Tuple{},NamedTuple{(),Tuple{}}}, ::Function, ::typeof(Pkg.Types.read_project), ::String) at .\iostream.jl:369
 [4] open at .\iostream.jl:367 [inlined]
 [5] read_project(::String) at C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\Pkg\src\Types.jl:441
 [6] Pkg.Types.EnvCache(::Nothing) at C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\Pkg\src\Types.jl:289
 [7] Type at C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\Pkg\src\Types.jl:285 [inlined]
 [8] Type at .\none:0 [inlined]
 [9] Context!(::Array{Pair{Symbol,Any},1}) at C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\Pkg\src\Types.jl:367
 [10] Context! at C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\Pkg\src\REPLMode.jl:497 [inlined]
 [11] do_add!(::Dict{Symbol,Any}, ::Array{Pkg.Types.PackageSpec,1}, ::Dict{Symbol,Any}) at C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\Pkg\src\REPLMode.jl:633
 [12] #invokelatest#1(::Base.Iterators.Pairs{Union{},Union{},Tuple{},NamedTuple{(),Tuple{}}}, ::Function, ::Any, ::Any, ::Vararg{Any,N} where N) at .\essentials.jl:691
 [13] invokelatest(::Any, ::Any, ::Vararg{Any,N} where N) at .\essentials.jl:690
 [14] do_cmd!(::Pkg.REPLMode.PkgCommand, ::REPL.LineEditREPL) at C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\Pkg\src\REPLMode.jl:542
 [15] #do_cmd#30(::Bool, ::Function, ::REPL.LineEditREPL, ::String) at C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\Pkg\src\REPLMode.jl:507
 [16] do_cmd at C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\Pkg\src\REPLMode.jl:503 [inlined]
 [17] (::getfield(Pkg.REPLMode, Symbol("##41#44")){REPL.LineEditREPL,REPL.LineEdit.Prompt})(::REPL.LineEdit.MIState, ::Base.GenericIOBuffer{Array{UInt8,1}}, ::Bool) at C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\Pkg\src\REPLMode.jl:842
 [18] #invokelatest#1 at .\essentials.jl:691 [inlined]
 [19] invokelatest at .\essentials.jl:690 [inlined]
 [20] run_interface(::REPL.Terminals.TextTerminal, ::REPL.LineEdit.ModalInterface, ::REPL.LineEdit.MIState) at C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\REPL\src\LineEdit.jl:2261
 [21] run_frontend(::REPL.LineEditREPL, ::REPL.REPLBackendRef) at C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\REPL\src\REPL.jl:1029
 [22] run_repl(::REPL.AbstractREPL, ::Any) at C:\cygwin\home\Administrator\buildbot\worker\package_win64\build\usr\share\julia\stdlib\v0.7\REPL\src\REPL.jl:191
 [23] (::getfield(Base, Symbol("##831#833")){Bool,Bool,Bool,Bool})(::Module) at .\logging.jl:311
 [24] #invokelatest#1 at .\essentials.jl:691 [inlined]
 [25] invokelatest at .\essentials.jl:690 [inlined]
 [26] macro expansion at .\logging.jl:308 [inlined]
 [27] run_main_repl(::Bool, ::Bool, ::Bool, ::Bool, ::Bool) at .\client.jl:340
 [28] exec_options(::Base.JLOptions) at .\client.jl:252
 [29] _start() at .\client.jl:432
pkg>
julia> versioninfo()
Julia Version 0.7.0
Commit a4cb80f3ed (2018-08-08 06:46 UTC)
Platform Info:
  OS: Windows (x86_64-w64-mingw32)
  CPU: Intel(R) Core(TM) i7-7700HQ CPU @ 2.80GHz
  WORD_SIZE: 64
  LIBM: libopenlibm
  LLVM: libLLVM-6.0.0 (ORCJIT, skylake)