JAVA :'127.0.0.1*' is not recognized as an internal or external command, operable program or batch file.

Assuming you are on windows (this bug is caused by the crappy bat files escaping), It is a bug introduced in the latest versions (7.0.56 and 8.0.14) to workaround another bug. Try to remove the "around the JAVA_OPTS declaration in catalina.bat. It fixed it for me with tomcat 7.0.56 yesterday.

In 7.0.56 in bin/catalina.bat:179 and 184

:noJuliConfig
set "JAVA_OPTS=%JAVA_OPTS% %LOGGING_CONFIG%"

..

:noJuliManager
set "JAVA_OPTS=%JAVA_OPTS% %LOGGING_MANAGER%"

to

:noJuliConfig
set JAVA_OPTS=%JAVA_OPTS% %LOGGING_CONFIG%

.. 

:noJuliManager
set JAVA_OPTS=%JAVA_OPTS% %LOGGING_MANAGER%

For your asterisk, it might only be a configuration of yours somewhere that appends it to the host declaration.