Ok, I used debugger and single stepped to find the root of the "Unsupported Policy" exception.
org.jboss.ws.extensions.policy.deployer.PolicyDeployer is not finding the namespace in it 'domainDeployerMap'. The namespace it looks for is: http://schemas.xmlsoap.org/ws/2005/07/securitypolicy
So, I guess I will be learning how to introduce this policy to my configuration. Is this the right path? I'm not sure because I have an expectation that this would be already builtin.