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Enable trace logging for org.jboss.jca, org.hibernate, org.jboss.as.jpa and com.arjuna to get more information about what is occurring exactly (from tx start to tx end). Attach the server.log (zip it if large) to this forum. Extra points if you also examine the server.log.
Thanks Scott. Your answer led me to the correct settings.
Problem was that my datasource was defined correctly in the peristence.xml:
<persistence-unit name="bcore" transaction-type="JTA">
but it wasn't in the standalone.xml
<datasource jta="false" ... >
Thus when setting jta to true, then CMT (and BMT) work correctly!