That stacktrace is telling you that 
        
        
        com.sun.xml.internal.ws.transport.http.server.ServerMgr.createContext(ServerMgr.java:85)
            is attempting to create a context on a server. 
        
          
        The
            fact that it attempts to .setExecutor() means that it
            created a new server at the point of
            ServerMgr.createContext().
        But
            what is odd is that this attempt to .setExecutor() occurred
            on an already started server. (which
            is a no-no, and the cause of the error).
        
          
        You might want
            to enable java.util.logging and set the logger named "com.sun.xml.internal.ws"
            to level FINEST and see what its attempting to do.
         
        
          
        Some thoughts,
            because you are using
            JettyhttpServerProvider.setServer(server), you are
            essentially wanting to use a shared server instance,
            regardless of subsequent HttpServer.createHttpServer()
            calls.
        This might be
            tripping up the WS implementation.
        
          
        You'll either
            want to manage the server entirely yourself, or use the
            http-spi functions in a non-shared mode.
        
          
        So that
            simplifies your codebase to the following ....
        
          
        --(snip)--
        System.setProperty("com.sun.net.httpserver.HttpServerProvider",
          "org.eclipse.jetty.http.spi.JettyHttpServerProvider");
          
          
        InetSocketAddress
            addr = new InetSocketAddress("localhost", 8080);
        HttpServer
            server = new JettyHttpServerProvider.createHttpServer(addr,
            10);
        Endpoint
            endpoint = Endpoint.publish(endpointURL, myWebServices);
          server.start();
          
        
          
        --(snip)--
        
          
        This
            is using the http-spi directly, allowing it to manage the
            http server state and whatnot.
        Not
            the hybrid approach that you were working with.
        
          
        It
            seems that the WS implementation you are using requires this
            approach.