@debbie_ellis
I cannot answer the question directly, just provide some hopefully helpful insight.
LTIs have long had problems with beta or test environments. Even some of Canvas' tools pull the information from production when you access them in beta or test -- if you can even get them to run in beta or test at all. The presence of a test and beta in Canvas does not mean that the third party tool automatically has a beta and test as well. If you are given a test environment from a vendor there is nothing that inherently requires that it be tied to the test environment inside Canvas. That is Canvas test does not equal Panopto test.
If you create the developer key in test or beta, it is for short term development only. Production values overwrite test once a month and beta once a week. This may be another reason why most vendors do not support test and beta -- although the greater reason may be that it is production that generates the data.
Normally, information is passed from production to test and beta on a schedule and not on demand. I would not expect that a new key generated, even if it is "only in test", to be recognized in test until the next update. Again, I have no specific knowledge, just inferring from ways other things work.
My interpretation of the "test cluster only" setting is that it is a security measure to prevent access to the production data. If you are developing a program and you don't want to mess up production data with a mistake, this is a great option to choose. However, that means that the a key generated with that setting would not be recognized by production, which makes it unlikely that the SSO would work from production.
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