Q:

What causes this "Unexpected element" that throws XMLStreamValidationException in JBoss config?

I am trying to migrate some software from JBoss 5 to JBoss 7. I am stuck, as my deployment fails with the below exceptions. Keep in mind that the software is working in JBoss 5, so anything that is not working should be because of differences between JBoss 5/7, I assume.
The line in question (line 12, as pointed to in the exception), is the following:
<application-policy xmlns="urn:jboss:security-beans:1.0" name="MyProjectDatabaseLogin">

The errors/exceptions are:
ERROR [org.jboss.msc.service.fail] (MSC service thread 1-4) MSC000001: Failed to start service jboss.deployment.unit."myear.ear".PARSE: org.jboss.msc.service.StartException in service jboss.deployment.unit."myear.ear".PARSE: WFLYSRV0153: Failed to process phase PARSE of deployment "myear.ear"
    [stack trace omitted]
Caused by: org.jboss.as.server.deployment.DeploymentUnitProcessingException: WFLYPOJO0038: Exception while parsing POJO descriptor file: "/content/myear.ear/META-INF/myproject-auth-jboss-beans.xml"
    [stack trace omitted]
Caused by: org.projectodd.vdx.core.XMLStreamValidationException: ParseError at [row,col]:[12,4]
Message: ParseError at [row,col]:[12,4]
Message: WFLYCTL0198: Unexpected element '{urn:jboss:security-beans:1.0}application-policy' encountered
    [stack trace omitted]

ERROR [org.jboss.as.controller.management-operation] (Controller Boot Thread) WFLYCTL0013: Operation ("deploy") failed - address: ([("deployment" => "myear.ear")]) - failure description: {"WFLYCTL0080: Failed services" => {"jboss.deployment.unit.\"myear.ear\".PARSE" => "WFLYSRV0153: Failed to process phase PARSE of deployment \"myear.ear\"
    Caused by: org.jboss.as.server.deployment.DeploymentUnitProcessingException: WFLYPOJO0038: Exception while parsing POJO descriptor file: \"/content/myear.ear/META-INF/myproject-auth-jboss-beans.xml\"
    Caused by: org.projectodd.vdx.core.XMLStreamValidationException: ParseError at [row,col]:[12,4]
Message: ParseError at [row,col]:[12,4]
Message: WFLYCTL0198: Unexpected element '{urn:jboss:security-beans:1.0}application-policy' encountered"}}

Why is application-policy (or the xmlns value for it) unexpected here? What is causing this exception?

I had to manually type the above xml line and errors/exceptions, so it is possible there could be some typos not actually present in the original which do not contribute to the problem, though I have reread my question here several times and I don't think I typo'd the above.

A:

I eventually figured out that these configurable items are no longer supposed to be in the same file. This information is now supposed to be in the server's configuration file, so you will probably put it into either the domain.xml file or the standalone.xml file.
This is a security application policy, so the contents of this tag now go into the <security-domains> section in a <security-domain> tag.
So it would be like the following. Notice that <application-policy ...> is now <security-domain ...> and it is within <security-domains>. Also, my security application-policy from before had two <login-module> within it, but if the new elytra security system is used, then only 1 <login-module> tag is allowed in the security-domain...
...
    <security-domains> <!-- Search for this in the file and put the migrated part into here -->
        <security-domain name="MySecurityDomain">
            ... all the stuff that used to be in the security application policy
            ... note that some of the stuff you put in here might need to change depending on the security system used
        </security-domain>
    </security-domains>
...

