Hello NGS, as part of the clone we are copying the target ORACLE_HOME to the destination and hence both have same files.
By the way, both the instances have same output.
This is really strange
Last option which I have is to relink FNDCPASS through adadmin or manually and see if it is getting relinked successfully, then retest.
in fact, we even tried this... going for a reclone.
One last thing I found is -
Unable To Change APPLSYS Password Using FNDCPASS In Applications 12.1.3:
Referance : FNDCPASS Troubleshooting Guide For Login and Changing Applications Passwords (Doc ID 1306938.1)