Shared and IX locks causing deadlock (Sql server)
You'll want to change your code to something like this.

DECLARE @AssetIssueId INT
INSERT INTO [Issue] ([IssueId], [AssetId]) VALUES (?, ?)
SET @AssetIssueID = scope_identity()
INSERT INTO [IssuePropertyValues] 
@AssetIssueID, ?, ?


As to the why...

If Java is starting a transaction for you automatically, and the insert of 10k+ rows is taking a few moments, then this thread is taking an IX on the Issue table.  Another thread is then taking an IX on the issue table (which is blocked).  This thread is then attempting to take an S on the issue table (for the INSERT SELECT FROM statement) which is blocked waiting for the other thread, and we now have a deadlock.