When you connect to a server you will be immediately disconnected and get the following error:
"Internal Exception: java.lang.IlegalArgumentException: Parameter 'directory' is not a directory"
It appears to be an issue with Minecraft 1.8.6 and 1.8.7: https://bugs.mojang.com/browse/MC-81019
How to Fix
The workaround is to create the following folder manually: server-resource-packs
- Start the Minecraft Launcher
 - Click 'Edit Profile'
 - Click 'Open Game Dir', this will open an Explorer (Finder on Mac) window in your '.minecraft' folder
 - Create a new folder called: server-resource-packs:
 
Windows
- Tap the 'Alt' key (To show the menu)
 - Choose from the menu: File>New>Folder, this will create a new folder named 'New Folder'
 - Change the name to: server-resource-packs
 
Mac
- Choose File > New Folder, or press Shift–Command (⌘)–N
 - Enter 'server-resource-packs', then press Return
 
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