Review the "Fuse" section of the quickstart readmes and remove the lines that talk about adding a features xml - the features xml is shipped with Fuse and it is not necessary to add one :

2. Add the features URL for the respective version of SwitchYard.

JBossFuse:karaf@root> features:addurl mvn:org.switchyard.karaf/switchyard/$

/xml/core-features