This method is not applicable inside the application server. See the J2EE spec, e.g. J2EE1.4 Section 6.6

javax.jms.IllegalStateException: This method is not applicable inside the application server. See the J2EE spec, e.g. J2EE1.4 Section 6.6
2010-06-10 16:18:51,656 503469 ERROR [STDERR] @main at org.jboss.resource.adapter.jms.JmsSession.checkStrict
(JmsSession.java:754)
2010-06-10 16:18:51,656 503469 ERROR [STDERR] @main at org.jboss.resource.adapter.jms.JmsMessageConsumer
.setMessageListener(JmsMessageConsumer.java:174)

Fix:
Adding the following in the file, default/deploy/jms-ds.xml (or) production/deploy/hajndi-jms-ds.xml based on the profile used, fixed it.

<config-property name="Strict" type="java.lang.Boolean">false</config-property> under "<tx-connection-factory><jndi-name>JmsXA</jndi-name>"