1. s_ohs_instance is not a file, it is the name of the directory which holds the configurations of the OHS.
2. It wont create any issue and we can go with the either of the options shown opted by you . For instance, while running fs_clone if the OHS_1 directory exists it will allow you to create another as OHS_2 .
3. While running fs_clone it will read ( Context Files are stored in the database.. The table that store the context files( historically) is "FND_OAM_CONTEXT_FILES") before configuring.
4. For your question: if it is using different OHS instance, fs_clone would work fine or it would error out? ---- fs_clone cleanup all the data from patch fs, it will cleanup everything related to OHS2 and copy OHS1 from run fs .
-Chiranjeevi M A
BTW, it was a typo, i meant "is this fine?" instead of "is this file?".