Thanks Everyone.
Thanks jaikiran! it worked when i moved the persistence.xml to the META-INF 
within the EJB jar.

I also found with my existing file structure with the persistence.xml at the 
top level META-INF in the ear file.  It works if I add the unitName to the
@PersistenceContext annotation.
eg: 
@PersistenceContext(unitName=UNIT_NAME)

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