Created attachment 30200 [details] patch revision 889701 "JARs without any web.xml fragments should not impact the status of distributable" was applied to scan(JarURLConnection jarConn), but was not applied to scan(File file). I ran into this while trying to run cluster nodes from inside eclipse/wtp which supplies some folders to WebappClassLoader.addRepository(), e.g. <another workspace project>/classes. This causes the app to be marked as distributable=false, regardless of supplying the <distributable/> tag in the web.xml. The attached patch resolved the issue for me. Thanks.
Thanks for the report. Fixed in trunk and 7.0.x and will be included in 7.0.40 onwards.