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The first Java version is the one installed in the application server or database server technology stack. It is used by the server processes that comprise the various EBS services such as IAS.
The context file has configuration pertaining to both JDK plugin and Jinitiator.
The JDK plugin is the client JRE that must be installed for the application (forms) to work. The version in the context file is the minimum that must be installed on the client computer.
Jinitiator is no longer available and has been desupported years ago.
Do we need to update JDK plugin version in context file and remove Jinitiator from context file ?
how does context file picking this java version, i meant from where
!-- JDK plugins -->
You should NOT change anything in the context file manually especially removing stuff!
These settings are usually shipped with the product.
The supported way of updating them is to use a script (txkSetPlugin) AFTER you copy the newer JRE version to the relevant folder.
Review this document for everything you need to know about this process:
Deploying JRE (Native Plug-in) for Windows Clients in Oracle E-Business Suite Release 12 (Doc ID 393931.1)