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I see what the problem is, but I'm not sure how to fix it. The problem is that the wrong groupId is being used for the archetype - it should be org.jboss.spec.archetypes (with an 's', in the error message the 's' is missing). I suspect that somewhere in JBossTools that this archetype is being referenced for creating a webapp - correcting that definition should fix this problem. But I don't know where that is located (reinstalled the OS on my laptop a couple days ago and haven't installed JBosss Tools yet). If this information doesn't help, let me know and I'll dig some more.
After i try several times, it looks like i figure it out to make the project but only under jboss tools (eclipse)
1. Delete .m2 folder in the User folder, so it can redownload everything from the start
2. Create the project
3. If something errors in the Problems tab regarding artifact not found, right-click the project -> maven -> update project and tick Force Update of Snapshots/Releases
4. Also I change the BOM with the newest one. (in my case i changed it into 1.0.3.Final; while from jboss tools default is 1.0.2.Final-redhat-1)
I know this may not the most right answer for all issue regarding this, but it works for me (at least)