In WildFly Core the embedded standalone server factory was renamed from EmbeddedStandAloneServerFactory to EmbeddedStandaloneServerFactory. This caused an issue with wildfly-arquillian-embedded not being able to work with WildFly 10 (WildFly Core 2). As a result of this WildFly Arquillian was bumped to version 2.0.0, now requires Java 8 and WIldFly Core 2.
Both 2.x and 1.x versions should work with WildFly 8.x and higher with the exception of wildfly-arquillian-embedded. This means that if embedded is required 1.x needs to be used for WildFly 9 where as 2.x needs to be used for WildFly 10+.
I've released a 2.0.0.Alpha1 version of wildfly-arquillian that can be used with WildFly 10. We'll move into an Alpha2 after some work is done with the managed domain container.
James R. Perkins
JBoss by Red Hat