How to pass a jvm parameter to xwiki server when run functional test

You can’t. The build generates it.

But again you shouldn’t need any change to this file normally. If you really want to change it, you should change it in xwiki-platform/xwiki-platform-tools/xwiki-platform-tool-jetty/xwiki-platform-tool-jetty-resources/src/main/resources at master · xwiki/xwiki-platform · GitHub and rebuild this module.