Yes with the following the JVM starts fine without any issue.
Debug Arguments:
-agentlib:jdwp=transport=dt_socket,server=y,suspend=n,address=7777
Generic JVM Arguments:
-Dclient.encoding.override=iso-8859-1 -Dfile.encoding=iso-8859-1 -Djava.awt.headless=true -Djava.security.debug=failure -verbose:class -Xdebug -Dlogpath=test_server
And i want to remove the -XDEBUG from the Generic JVM arguments.
The following is a required
-Dclient.encoding.override=iso-8859-1 -Dfile.encoding=iso-8859-1-Djava.security.debug=failure
Rest can be removed ...