PicketBoxSecurityVault is replacing all appearances of ":" in the KEYSTORE_URL and ENC_FILE_DIR with "::". It is assuming the ":" is separator in system property replacement expression, but ":" is also a common character in a URL. Result is:

00:17:22,777 ERROR [org.jboss.as.controller.management-operation] JBAS014612: Operation ("add") failed - address: ([("core-service" => "vault")]): java.lang.RuntimeException: JBAS015804: Error initializing vault – org.jboss.as.server.services.security.VaultReaderException: org.jboss.security.vault.SecurityVaultException: org.jboss.security.vault.SecurityVaultException: PBOX000123: File or directory C::\development\java\jboss-as\testsuite\integration\basic/src/test/resources/security/ does not exist
at org.jboss.as.server.services.security.VaultAddHandler.performRuntime(VaultAddHandler.java:115)
at org.jboss.as.controller.AbstractAddStepHandler$1.execute(AbstractAddStepHandler.java:50) [jboss-as-controller-7.1.3.Final-SNAPSHOT.jar:7.1.3.Final-SNAPSHOT]
at org.jboss.as.controller.AbstractOperationContext.executeStep(AbstractOperationContext.java:397) [jboss-as-controller-7.1.3.Final-SNAPSHOT.jar:7.1.3.Final-SNAPSHOT]
at org.jboss.as.controller.AbstractOperationContext.doCompleteStep(AbstractOperationContext.java:284) [jboss-as-controller-7.1.3.Final-SNAPSHOT.jar:7.1.3.Final-SNAPSHOT]
at org.jboss.as.controller.AbstractOperationContext.completeStep(AbstractOperationContext.java:211) [jboss-as-controller-7.1.3.Final-SNAPSHOT.jar:7.1.3.Final-SNAPSHOT]
at org.jboss.as.controller.ParallelBootOperationStepHandler.execute(ParallelBootOperationStepHandler.java:161) [jboss-as-controller-7.1.3.Final-SNAPSHOT.jar:7.1.3.Final-SNAPSHOT]
at org.jboss.as.controller.AbstractOperationContext.executeStep(AbstractOperationContext.java:397) [jboss-as-controller-7.1.3.Final-SNAPSHOT.jar:7.1.3.Final-SNAPSHOT]
at org.jboss.as.controller.AbstractOperationContext.doCompleteStep(AbstractOperationContext.java:284) [jboss-as-controller-7.1.3.Final-SNAPSHOT.jar:7.1.3.Final-SNAPSHOT]
at org.jboss.as.controller.AbstractOperationContext.completeStep(AbstractOperationContext.java:211) [jboss-as-controller-7.1.3.Final-SNAPSHOT.jar:7.1.3.Final-SNAPSHOT]
at org.jboss.as.controller.ModelControllerImpl.boot(ModelControllerImpl.java:175) [jboss-as-controller-7.1.3.Final-SNAPSHOT.jar:7.1.3.Final-SNAPSHOT]
at org.jboss.as.controller.AbstractControllerService.boot(AbstractControllerService.java:191) [jboss-as-controller-7.1.3.Final-SNAPSHOT.jar:7.1.3.Final-SNAPSHOT]
at org.jboss.as.server.ServerService.boot(ServerService.java:300)
at org.jboss.as.server.ServerService.boot(ServerService.java:275)
at org.jboss.as.controller.AbstractControllerService$1.run(AbstractControllerService.java:156) [jboss-as-controller-7.1.3.Final-SNAPSHOT.jar:7.1.3.Final-SNAPSHOT]
at java.lang.Thread.run(Thread.java:662) [rt.jar:1.6.0_31]
Caused by: org.jboss.as.server.services.security.VaultReaderException: org.jboss.security.vault.SecurityVaultException: org.jboss.security.vault.SecurityVaultException: PBOX000123: File or directory C::\development\java\jboss-as\testsuite\integration\basic/src/test/resources/security/ does not exist
at org.jboss.as.security.vault.RuntimeVaultReader.createVault(RuntimeVaultReader.java:84)
at org.jboss.as.server.services.security.VaultAddHandler.performRuntime(VaultAddHandler.java:113)
... 14 more
Caused by: org.jboss.security.vault.SecurityVaultException: org.jboss.security.vault.SecurityVaultException: PBOX000123: File or directory C::\development\java\jboss-as\testsuite\integration\basic/src/test/resources/security/ does not exist
at org.picketbox.plugins.vault.PicketBoxSecurityVault.init(PicketBoxSecurityVault.java:195)
at org.jboss.as.security.vault.RuntimeVaultReader.createVault(RuntimeVaultReader.java:82)
... 15 more
Caused by: org.jboss.security.vault.SecurityVaultException: PBOX000123: File or directory C::\development\java\jboss-as\testsuite\integration\basic/src/test/resources/security/ does not exist
at org.picketbox.plugins.vault.PicketBoxSecurityVault.init(PicketBoxSecurityVault.java:173)
... 16 more