I haven't used this, but I don't read this the way that you read it. I see 1.0 and 2.0 not was two different flows of the same thing, but as someone trying to number the sections in an non-standard way.
Section 1.0 of this document describes how to retrieve a JWT access token for fetching custom TCPs and registering tools. Section 2.0 describes how to retrieve a JWT access token for use with LTI2 API. (such as the originality reports API).
1.0 JWT Access Tokens for Custom TCPs and Tool Proxy Registration
2.0 JWT Access Tokens for LTI2 APIs
In other words, why isn't that just 1 and 2 if they just refer to sections? Why is there a decimal .0 needed?
Under the 1.0 section, it still mentions LTI2.
Then, make a request to the authorization endpoint to retrieve your JWT access token. The URL you should use to make this request is sent in the initial registration request sent from Canvas as a parameter named oauth2_access_token_url. To receive this parameter in the registration request you must first enable the account-level feature flag named “Send Authorization URL in LTI2 Registration.” This parameter will be sent by default without requiring the feature flag in the future.
Since I don't use this, I have more questions than answers. I wonder if the LTI2 is even a legit thing anymore. According to the LTI Adoption Roadmap, LTI 2.0 is a legacy specification, but the recommended upgrade path is to go to LTI 1.3. Then in July 2019, they posted a security update that announced 2.0 was essentially dead: LTI Security Announcement and Deprecation Schedule (July 2019). Canvas posted their announcement about LTI 1.3 in February 2019: LTI Advantage and a message about the deprecation of LTI 2.0 in July 2019: What does the recent IMS LTI Deprecation and Security Update mean for Canvas users and integrations?
In other words, I could imagine scenarios where the reference to LTI2 in the document you mentioned could be (1) a reference to the next-generation LTI of Canvas (they go through naming schemes depending on the year, Quizzes 2.0, Quizzes.LTI, Quizzes.Next, New Quizzes) and not the official LTI 2.0 specification or (2) an outdated reference that hasn't been updated for LTI 1.3.
Peter knows much more about this than I do. All I can say is that I didn't read the 1.0 and 2.0 to refer to LTI 1.x and LTI 2.x, but as to section headings that shouldn't have had a 0 at the end.
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