Google released a new update today (3/18) to their Android developer tooling. This update still contains a bug (to be fixed in 22.6.2) that prevents the creation of AVDs from the command line. This impacts Studio and any other Android-related tooling that uses this functionality. Unless you explicitly need to upgrade we recommend you hold off updating until at least version 22.6.2 is released.
How to track resolution of this issue?
How do I fix this problem?
Download a previous version of the Android tools: