Illegal provider-class name: http\://www.w3.org/2001/XMLSchema=com.sun.org.apache.xerces.internal.jaxp.validation.xs.SchemaFactoryImpl when application packages jaxp implementation in JBoss EAP 7

Issue

Application packaging jaxp-ri-2.0.jar (Sun JAXP Implementation classes) is failing when application tries to create new JAXP SchemaFactory object with Illegal provider-class name: http://www.w3.org/2001/XMLSchema=com.sun.org.apache.xerces.internal.jaxp.validation.xs.SchemaFactoryImpl:

javax.xml.validation.SchemaFactoryConfigurationError: Provider for class javax.xml.validation.SchemaFactory cannot be created
    at org.wildfly.extension.undertow.deployment.UndertowDeploymentService$1.run(UndertowDeploymentService.java:81)
...
Caused by: javax.xml.validation.SchemaFactoryConfigurationError: Provider for class javax.xml.validation.SchemaFactory cannot be created
    at javax.xml.validation.SchemaFactoryFinder.findServiceProvider(SchemaFactoryFinder.java:362)
    at javax.xml.validation.SchemaFactoryFinder._newFactory(SchemaFactoryFinder.java:219)
    at javax.xml.validation.SchemaFactoryFinder.newFactory(SchemaFactoryFinder.java:146)
    at javax.xml.validation.SchemaFactory.newInstance(SchemaFactory.java:213)
    at com.redhat.examples.servlet.Servlet.init(Servlet.java:52)
...
Caused by: java.util.ServiceConfigurationError: javax.xml.validation.SchemaFactory: vfs:/content/packaged-xml-parsers.war/WEB-INF/lib/jaxp-ri-2.0.jar/META-INF/services/javax.xml.validation.SchemaFactory:1: Illegal provider-class name: http\://www.w3.org/2001/XMLSchema=com.sun.org.apache.xerces.internal.jaxp.validation.xs.SchemaFactoryImpl
    at java.util.ServiceLoader.fail(ServiceLoader.java:239)
    at java.util.ServiceLoader.fail(ServiceLoader.java:245)
    at java.util.ServiceLoader.parseLine(ServiceLoader.java:272)
    at java.util.ServiceLoader.parse(ServiceLoader.java:307)
    at java.util.ServiceLoader.access$200(ServiceLoader.java:185)
    at java.util.ServiceLoader$LazyIterator.hasNextService(ServiceLoader.java:357)
    at java.util.ServiceLoader$LazyIterator.hasNext(ServiceLoader.java:393)
    at java.util.ServiceLoader$1.hasNext(ServiceLoader.java:474)
    at javax.xml.validation.SchemaFactoryFinder$2.run(SchemaFactoryFinder.java:351)
    at javax.xml.validation.SchemaFactoryFinder$2.run(SchemaFactoryFinder.java:347)
    at java.security.AccessController.doPrivileged(Native Method)
    at javax.xml.validation.SchemaFactoryFinder.findServiceProvider(SchemaFactoryFinder.java:347)
    ... 29 more
...