Turning on schema validation in 2.7.7 seems to have a number of problems. In the case of my own embedded CXF, it does validate but fails with schemas that have circular references to each other (not illegal according to W3C spec or their schema validator tool online).
So I wrote a test sample but found that in the test sample that it doesn't validate the schema at all- just lets the bad elements go through with no error. The 2.7.6 version of the sample properly throws an error- and all I did to create the 2.7.6 version was to copy the sample folder under 2.7.6 and search/replace 2.7.7 in the pom.xml with 2.7.6.
For this issue, I think we should try to solve why 2.7.6 properly throws an exception on a request with a bad schema and why 2.7.7 does not. I'll check separately if the resolution to this fixes my initial problem and if it doesn't then I'll create a separate issue for that along with a test case.
I will attach the test sample after creating the issue.