Solved below also in properties file format. The trick was to get the filter definition right. Log4j properties info here
The original attempt, modified to filter WARN & ERROR:
log4j.rootLogger=TRACE, stdout, stderr
# configure stdout
# set the conversion pattern of stdout
# Print the date in ISO 8601 format
log4j.appender.stdout = org.apache.log4j.ConsoleAppender
log4j.appender.stdout.Threshold = TRACE
log4j.appender.stdout.Target = System.out
log4j.appender.stdout.layout = org.apache.log4j.PatternLayout
log4j.appender.stdout.layout.ConversionPattern = %-5p %d [%t][%F:%L] : %m%n
log4j.appender.stdout.filter.filter1=org.apache.log4j.varia.LevelRangeFilter
log4j.appender.stdout.filter.filter1.levelMin=TRACE
log4j.appender.stdout.filter.filter1.levelMax=INFO
# configure stderr
# set the conversion pattern of stdout
# Print the date in ISO 8601 format
log4j.appender.stderr = org.apache.log4j.ConsoleAppender
log4j.appender.stderr.Threshold = WARN
log4j.appender.stderr.Target = System.err
log4j.appender.stderr.layout = org.apache.log4j.PatternLayout
log4j.appender.stderr.layout.ConversionPattern = %-5p %d [%t][%F:%L] : %m%n