Just to be sure to have the issue reproduced be sure to set the debug level of root and file loggers in jboss AS7 to DEBUG. Of course having a simple WAR would help, for example just a home.xhtml, a facesConfig Enum (from Seam), and a simple prettyConfig rule as the one I posted.
This is pretty serious, I excluded prettyFaces from my project until there is a fix for this.
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