1.What happens to the token created by a Custom agent after a Standard web agent validates it and issues a new token?
Yes, Standard web agent validates and creates new token.
2. Will the token always remain a Third Party Token?
Correct. If the cookie presented is Third Party cookie, it will maintain that.
3. Is there a setting (ACO Parameter) for R12 web agent that can make the agent convert a Third Party Token to a standard token after validation?
No such configuration available even in the latest version of Web Agent.
4. Kindly update AcceptTPCookie=yes in App2 (In this use case) as well to resolve the issue.
5. In a multi agent environment, AcceptTPCookie must be set to YES in all agents that needs to validate the cookie that was originally generated by SDK.