It appears that the exception has been due to some problems with the local repo. After cleanup, e.g. removing target directories from ~/.sbt directory it’s now working fine.
jacek:~/.sbt
$ find . -name target | xargs rm -rf
jacek:~/sandbox/stackoverflow/testaaa
$ sbt
[info] Loading global plugins from /Users/jacek/.sbt/0.13/plugins
[info] Updating {file:/Users/jacek/.sbt/0.13/plugins/}global-plugins...
[info] Resolving org.fusesource.jansi#jansi;1.4 ...
[info] Done updating.
[info] Set current project to testaaa (in build file:/Users/jacek/sandbox/stackoverflow/testaaa/)
[testaaa]>
I found the solution in the thread [2.1.1] SBT: InputStream in GZIPInputStream: java.io.EOFException in the play-framework forum.
I was also told that the issue goes away after removing all target directories in the project’s home directory, e.g. target, project/target.
jacek:my-project-path
$ find . -name target | xargs rm -rf