No, we have not come up with a solution.
We had a teleconference call with engineers from Dynatrace and they could not come up with any solution either.
What I id confirm with CA is that the JVMOptions.txt is NOT used at startup, so trying to modify it anyway is in vain.
" The JVMOptions.txt file contains the settings that the Policy Server uses when creating the Java virtual machine that is used to support Federation Web Services. SAML 1.x, SAML 2.0, and WS-Federation use this file." ..