I added that to build.xml, still same error message and also still shows using H2Dialect
2017-05-08 15:33:34,216 INFO [org.hibernate.dialect.Dialect] (ServerService Thread Pool -- 76) HHH000400: Using dialect: org.hibernate.dialect.H2Dialect
2017-05-08 15:33:34,219 WARN [org.hibernate.dialect.H2Dialect] (ServerService Thread Pool -- 76) HHH000431: Unable to determine H2 database version, certain features may not work
2017-05-08 15:33:34,254 INFO [org.hibernate.Version] (ServerService Thread Pool -- 64) HHH000412: Hibernate Core {5.0.7.Final}
2017-05-08 15:33:34,255 INFO [org.hibernate.cfg.Environment] (ServerService Thread Pool -- 64) HHH000206: hibernate.properties not found
2017-05-08 15:33:34,257 INFO [org.hibernate.cfg.Environment] (ServerService Thread Pool -- 64) HHH000021: Bytecode provider name : javassist
2017-05-08 15:33:34,281 INFO [org.hibernate.orm.deprecation] (ServerService Thread Pool -- 64) HHH90000001: Found usage of deprecated setting for specifying Scanner [hibernate.ejb.resource_scanner]; use [hibernate.archive.scanner] instead
2017-05-08 15:33:34,287 INFO [org.hibernate.annotations.common.Version] (ServerService Thread Pool -- 64) HCANN000001: Hibernate Commons Annotations {5.0.1.Final}
2017-05-08 15:33:34,449 INFO [org.hibernate.engine.transaction.internal.TransactionFactoryInitiator] (ServerService Thread Pool -- 76) HHH000268: Transaction strategy: org.hibernate.engine.transaction.internal.jta.CMTTransactionFactory
2017-05-08 15:33:34,452 INFO [org.hibernate.hql.internal.ast.ASTQueryTranslatorFactory] (ServerService Thread Pool -- 76) HHH000397: Using ASTQueryTranslatorFactory
2017-05-08 15:33:34,756 INFO [org.hibernate.tool.hbm2ddl.SchemaUpdate] (ServerService Thread Pool -- 76) HHH000228: Running hbm2ddl schema update
2017-05-08 15:33:34,757 INFO [org.hibernate.tool.hbm2ddl.SchemaUpdate] (ServerService Thread Pool -- 76) HHH000102: Fetching database metadata
2017-05-08 15:33:34,762 ERROR [org.hibernate.tool.hbm2ddl.SchemaUpdate] (ServerService Thread Pool -- 76) HHH000319: Could not get database metadata: com.microsoft.sqlserver.jdbc.SQLServerException: Invalid object name 'information_schema.sequences'.
at com.microsoft.sqlserver.jdbc.SQLServerException.makeFromDatabaseError(SQLServerException.java:217)
at com.microsoft.sqlserver.jdbc.SQLServerStatement.getNextResult(SQLServerStatement.java:1635)
at com.microsoft.sqlserver.jdbc.SQLServerStatement.doExecuteStatement(SQLServerStatement.java:865)
at com.microsoft.sqlserver.jdbc.SQLServerStatement$StmtExecCmd.doExecute(SQLServerStatement.java:762)
at com.microsoft.sqlserver.jdbc.TDSCommand.execute(IOBuffer.java:6276)
at com.microsoft.sqlserver.jdbc.SQLServerConnection.executeCommand(SQLServerConnection.java:1794)
at com.microsoft.sqlserver.jdbc.SQLServerStatement.executeCommand(SQLServerStatement.java:184)
at com.microsoft.sqlserver.jdbc.SQLServerStatement.executeStatement(SQLServerStatement.java:159)
at com.microsoft.sqlserver.jdbc.SQLServerStatement.executeQuery(SQLServerStatement.java:661)
at org.jboss.jca.adapters.jdbc.WrappedStatement.executeQuery(WrappedStatement.java:397)
at org.hibernate.tool.hbm2ddl.DatabaseMetadata.initSequences(DatabaseMetadata.java:177)
at org.hibernate.tool.hbm2ddl.DatabaseMetadata.<init>(DatabaseMetadata.java:91)
at org.hibernate.tool.hbm2ddl.DatabaseMetadata.<init>(DatabaseMetadata.java:83)
at org.hibernate.tool.hbm2ddl.SchemaUpdate.execute(SchemaUpdate.java:221)
at org.hibernate.tool.hbm2ddl.SchemaUpdate.execute(SchemaUpdate.java:203)
at org.hibernate.internal.SessionFactoryImpl.<init>(SessionFactoryImpl.java:509)
at org.hibernate.cfg.Configuration.buildSessionFactory(Configuration.java:1799)
at org.hibernate.ejb.EntityManagerFactoryImpl.<init>(EntityManagerFactoryImpl.java:96)
at org.hibernate.ejb.Ejb3Configuration.buildEntityManagerFactory(Ejb3Configuration.java:915)
at org.hibernate.ejb.Ejb3Configuration.buildEntityManagerFactory(Ejb3Configuration.java:900)
at org.hibernate.ejb.HibernatePersistence.createContainerEntityManagerFactory(HibernatePersistence.java:76)
at org.kie.server.services.jbpm.JbpmKieServerExtension.build(JbpmKieServerExtension.java:562)
at org.kie.server.services.jbpm.JbpmKieServerExtension.init(JbpmKieServerExtension.java:162)
at org.kie.server.services.impl.KieServerImpl.<init>(KieServerImpl.java:111)
at org.kie.server.services.impl.KieServerImpl.<init>(KieServerImpl.java:90)
at org.kie.server.services.impl.KieServerLocator.<clinit>(KieServerLocator.java:20)
at org.kie.server.services.Bootstrap.contextInitialized(Bootstrap.java:49)
at io.undertow.servlet.core.ApplicationListeners.contextInitialized(ApplicationListeners.java:187)
at io.undertow.servlet.core.DeploymentManagerImpl.deploy(DeploymentManagerImpl.java:198)
at org.wildfly.extension.undertow.deployment.UndertowDeploymentService.startContext(UndertowDeploymentService.java:100)
at org.wildfly.extension.undertow.deployment.UndertowDeploymentService$1.run(UndertowDeploymentService.java:82)
at java.util.concurrent.Executors$RunnableAdapter.call(Executors.java:511)
at java.util.concurrent.FutureTask.run(FutureTask.java:266)
at java.util.concurrent.ThreadPoolExecutor.runWorker(ThreadPoolExecutor.java:1142)
at java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:617)
at java.lang.Thread.run(Thread.java:748)
at org.jboss.threads.JBossThread.run(JBossThread.java:320)