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First remove the deny-purge policies in the default directory:
# rm /usr/local/fedora/data/fedora-xacml-policies/repository-policies/default/deny-purge-*

Then, create the islandora directory for the Islandora policy files, and copy the files from the islandora core module over
# mkdir /usr/local/fedora/data/fedora-xacml-policies/repository-policies/islandora
# cd /usr/local/fedora/data/fedora-xacml-policies/repository-policies/islandora
# cp /var/www/drupal/sites/all/modules/islandora/policies/* . (since 7.x-1.4 onwards no longer available)

Now, restart Tomcat.
# $FEDORA_HOME/tomcat/bin/shutdown.sh
# $FEDORA_HOME/tomcat/bin/startup.sh