Earlier versions of Weblogic Server did not support digest authentication. Not sure if 12c does.
Can u paste your web.xml? Also what is the url u r trying to acccess and wat are the headers u are passing?
Can we discuss it in email? The web application is an oracle product and not open source.
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What's the oracle product you are using it and if you want to avoid the digest authentication,you can remove the CLIENT-CERT defined in the auth-method of web.xml in the application and it will either fall back to FORM based or Basic authentication based on which is configured in the application