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Thanks for the tip. :)

I actually tried that more than once, althought not with fresh reinstall. Removing the cygwin folder and starting all over, making sure not to enable DOS translation did the trick.

I have the exact same problem. I have tried all that I could think of so far without success. The funny thing is that it says it's invalid option but if you edit toolchain.sh and remove the --enable-install-bfd it fails during the build.