Haskell tools compiled in the upgraded environment fail with this message, regardless of command line parameters.
As it turns out, RTS options can pose a security issue, so they can be disabled in GHC7. Then, when a RTS option is passed to such a program, it fails.
The problem was that I had GHCRTS environment variable set, which is added to RTS options of all Haskell programs. Clearing this environment variable solved the issue.
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