Looks like a bug to me. The error "XSCH4 Conglomerate could not be created" isn't being tested for in the Derby tests as far as I can see. I also searched the bug tracker (https://issues.apache.org/jira/browse/DERBY) in vain for this particular error.
Looking in the code where the error is reported in the source code, it looks like it shouldn't happen. Could you post a JIRA bug report for this error, please? It you are able to make a stand-alone repro that will increase your chances of having it fixed. Thanks, Dag