Java SE (Java Platform, Standard Edition)

Is there a known issue with jre-7u13 and deployment.properties/deployment.config? I ran procmon and can see that the Java applet is reading the deployment.config and deployment.properties but the applet still creates it's own without the locked settings.

Location: C:Windows\Sun\Java\Deployment\

deployment.config file
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deployment.system.config.mandatory=true
deployment.system.config=file:\\C\:\\Windows\\Sun\\Java\\Deployment\\deployment.properties

deployment.properties
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#deployment.properties
#Mon Feb 11 12:41:30 CST 2013
deployment.modified.timestamp=1360608090724
deployment.version=7.0
#Java Deployment jre's
#Mon Feb 11 12:41:30 CST 2013
deployment.javaws.jre.1.location=http\://java.sun.com/products/autodl/j2se
deployment.javaws.jre.0.args=
deployment.javaws.jre.0.registered=true
deployment.javaws.jre.1.args=
deployment.javaws.jre.1.enabled=true
deployment.javaws.jre.1.enabled.locked
deployment.javaws.jre.1.registered=true
deployment.javaws.jre.0.osarch=x86
deployment.javaws.jre.0.osname=Windows
deployment.javaws.jre.1.product=1.5.0_11
deployment.javaws.jre.0.platform=1.7
deployment.javaws.jre.0.path=C\:\\Program Files\\Java\\jre7\\bin\\javaw.exe
deployment.javaws.jre.0.location=http\://java.sun.com/products/autodl/j2se
deployment.javaws.jre.1.path=C\:\\Program Files\\Java\\jre1.5.0_11\\bin\\javaw.exe
deployment.javaws.jre.0.enabled=false
deployment.javaws.jre.0.enabled.locked
deployment.javaws.jre.1.osarch=x86
deployment.javaws.jre.1.osname=Windows
deployment.javaws.jre.1.platform=1.5
deployment.javaws.jre.0.product=1.7.0_13