Hi,
At this time, the documentation in the 'default' branch is probably a bit too detailed. I have edited the readme file in a different branch that is still a work in progress.
My current development environment is Eclipse 2021-09, JDK17 and Maven 3.9.4 but the version of Maven does not matter, that's why there is no mention of a specific version in the readme file.
Yes, you need a development instance (I recommend Eclipse 2021-09) and another instance, [incorrectly] called "baseline" in the documentation you have read, Eclipse 4.6 Neon. With this baseline, you do not need to do anything with Mylyn. You are having issues with Mylyn because this project was, after 2021-09, no longer included in the coordinated Eclipse releases. A later version "baseline" would do away with Mylyn but I have not yet merged the branch that has the updated documentation.
After downloading your Eclipse instances, the part of setting up your development environment that will take much time is the downloading of the p2 repository of Eclipse 4.6, for use with Tycho. This is mandatory because the project is built with Tycho, which requires the p2 repository. See section "Configuration for Tycho build" in the maintenance notes file.
After the download, you need to set up a local web server to serve the p2 repository (as a local mirror) via http.
After that, mvn clean package does the job: you do not need to configure libraries or anything else. I have to admit that this is the advantage of using Tycho for the builds, even if I never came to liking that tool. The errors in Eclipse should clear automatically after the first maven build since this copies libraries where they need to be found.
Again, the version of Maven does not matter, as long as the build succeeds. The minimal version is 3.6.3 and this is checked automatically during the build by a Maven plugin.
If you can wait a bit, I will schedule the reinstallation of a development workstation for next week, and follow the readme file again to see whether the instructions are still correct.
What is your goal with setting up a MercurialEclipse development environment?
Cheers!