This picture shows my simple ws-security configuration of soapui:
And I apply this configuration to soap request:
Then
You have the already encrypted message in the xml-tab of SoapUI and try to validate it against the xsd. That will never work as the xsd doesn't know anything about "xenc:EncryptedData"!
The encrypted message will be shown in the "Raw"-tab after you send the request as SoapUI will do the encryption while sending. You should not "apply outgoing" by yourself!