JBoss fails to start due to ERROR "Could not make local copy for file:$JBOSS_HOME/server/$PROFILE/conf/jboss-service.xml"

Issue

JBoss fails to start due to ERROR "Could not make local copy for file:$JBOSS_HOME/server/$PROFILE/conf/jboss-service.xml". For example:

ERROR [MainDeployer] Could not make local copy for file:$JBOSS_HOME/server/$PROFILE/conf/jboss-service.xml
java.io.IOException: Permission denied
    at java.io.UnixFileSystem.createFileExclusively(Native Method)
    at java.io.File.checkAndCreate(File.java:1704)
    at java.io.File.createTempFile(File.java:1792)
    at org.jboss.deployment.MainDeployer.makeLocalCopy(MainDeployer.java:1185)
    at org.jboss.deployment.MainDeployer.init(MainDeployer.java:851)
    at org.jboss.deployment.MainDeployer.deploy(MainDeployer.java:809)
    at org.jboss.deployment.MainDeployer.deploy(MainDeployer.java:782)
    at org.jboss.deployment.MainDeployer.deploy(MainDeployer.java:766)
    at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
    at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:39)
    at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:25)
    at java.lang.reflect.Method.invoke(Method.java:597)
    at org.jboss.mx.interceptor.ReflectedDispatcher.invoke(ReflectedDispatcher.java:155)
    at org.jboss.mx.server.Invocation.dispatch(Invocation.java:94)
    at org.jboss.mx.interceptor.AbstractInterceptor.invoke(AbstractInterceptor.java:133)
    at org.jboss.mx.server.Invocation.invoke(Invocation.java:88)
    at org.jboss.mx.interceptor.ModelMBeanOperationInterceptor.invoke(ModelMBeanOperationInterceptor.java:142)
    at org.jboss.mx.server.Invocation.invoke(Invocation.java:88)
    at org.jboss.mx.server.AbstractMBeanInvoker.invoke(AbstractMBeanInvoker.java:264)
    at org.jboss.mx.server.MBeanServerImpl.invoke(MBeanServerImpl.java:659)
    at org.jboss.mx.util.MBeanProxyExt.invoke(MBeanProxyExt.java:210)
    at $Proxy5.deploy(Unknown Source)
    at org.jboss.system.server.ServerImpl.doStart(ServerImpl.java:482)
    at org.jboss.system.server.ServerImpl.start(ServerImpl.java:362)
    at org.jboss.Main.boot(Main.java:200)
    at org.jboss.Main$1.run(Main.java:518)
    at java.lang.Thread.run(Thread.java:619)

or

ERROR [MainDeployer] Could not make local copy for file:$JBOSS_HOME/server/$PROFILE/conf/jboss-service.xml
java.io.IOException: No such file or directory
    at java.io.UnixFileSystem.createFileExclusively(Native Method)
    at java.io.File.createNewFile(File.java:1006)
    at java.io.File.createTempFile(File.java:1989)
    at org.jboss.deployment.MainDeployer.makeLocalCopy(MainDeployer.java:1185)
    at org.jboss.deployment.MainDeployer.init(MainDeployer.java:851)
    at org.jboss.deployment.MainDeployer.deploy(MainDeployer.java:809)
    at org.jboss.deployment.MainDeployer.deploy(MainDeployer.java:782)
    at org.jboss.deployment.MainDeployer.deploy(MainDeployer.java:766)
    at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
    at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:57)
    at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:43)
    at java.lang.reflect.Method.invoke(Method.java:606)
    at org.jboss.mx.interceptor.ReflectedDispatcher.invoke(ReflectedDispatcher.java:155)
    at org.jboss.mx.server.Invocation.dispatch(Invocation.java:94)
    at org.jboss.mx.interceptor.AbstractInterceptor.invoke(AbstractInterceptor.java:133)
    at org.jboss.mx.server.Invocation.invoke(Invocation.java:88)
    at org.jboss.mx.interceptor.ModelMBeanOperationInterceptor.invoke(ModelMBeanOperationInterceptor.java:142)
    at org.jboss.mx.server.Invocation.invoke(Invocation.java:88)
    at org.jboss.mx.server.AbstractMBeanInvoker.invoke(AbstractMBeanInvoker.java:264)
    at org.jboss.mx.server.MBeanServerImpl.invoke(MBeanServerImpl.java:659)
    at org.jboss.mx.util.MBeanProxyExt.invoke(MBeanProxyExt.java:210)
    at com.sun.proxy.$Proxy5.deploy(Unknown Source)
    at org.jboss.system.server.ServerImpl.doStart(ServerImpl.java:482)
    at org.jboss.system.server.ServerImpl.start(ServerImpl.java:362)
    at org.jboss.Main.boot(Main.java:200)
    at org.jboss.Main$1.run(Main.java:518)
    at java.lang.Thread.run(Thread.java:744)