fix(deps): update OTel Java Agent to v2.18.1 and OTel Contrib to v1.48.0

[lukeina2z]

This updates upstream dependency OTel Java Agent to v2.18.1 and upgrades upstream OTel Contrib to v1.48.0.

It removes two patch files, as those code has been migrated to upstream.

For the OTel Java Contrib patch, it has been replaced by PR-1959 open-telemetry/opentelemetry-java-contrib#1959
, which is included in the OTel Java Contrib v1.48.0 release.

For the OTel Java Agent patch for the Lambda stream handler, it has been replaced by PR-13466 open-telemetry/opentelemetry-java-instrumentation#13466
, which is included in the OTel Java Agent v2.18.1 release.

Tests:

• Unit tests pass: ./gradlew build test
• Smoke/Contract tests pass: ./gradlew appsignals-tests:contract-tests:contractTests
• X-Ray remote sampling service end-to-end manual tests pass
• EC2 end-to-end tests with SpringBoot Java app pass
• Lambda end-to-end tests with SpringBoot Java app pass

By submitting this pull request, I confirm that my contribution is made under the terms of the Apache 2.0 license.

[thpierce]

1. Do we need to update anything in instrumentation/aws-sdk? https://github.com/search?q=repo%3Aaws-observability%2Faws-otel-java-instrumentation%202.11&type=code
2. UdpExporterTest > testUdpExporterWithDefaults() FAILED - https://github.com/aws-observability/aws-otel-java-instrumentation/actions/runs/17079892031/job/48430777352?pr=1156. Pls take a look, seems new.

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Codecov Report

✅ All modified and coverable lines are covered by tests.
✅ Project coverage is 67.45%. Comparing base (09e6487) to head (6fa5cc6).
⚠️ Report is 472 commits behind head on main.
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Additional details and impacted files

@@              Coverage Diff              @@
##               main    #1156       +/-   ##
=============================================
- Coverage     85.71%   67.45%   -18.26%     
- Complexity       19      521      +502     
=============================================
  Files             3       54       +51     
  Lines            49     2649     +2600     
  Branches          5      368      +363     
=============================================
+ Hits             42     1787     +1745     
- Misses            3      729      +726     
- Partials          4      133      +129     

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[lukeina2z]

1. Do we need to update anything in instrumentation/aws-sdk? https://github.com/search?q=repo%3Aaws-observability%2Faws-otel-java-instrumentation%202.11&type=code
2. UdpExporterTest > testUdpExporterWithDefaults() FAILED - https://github.com/aws-observability/aws-otel-java-instrumentation/actions/runs/17079892031/job/48430777352?pr=1156. Pls take a look, seems new.

1. I assume you are saying the SPI project Vancouver team made. Yes, some code from that folder need to be removed as upstream already set the attributes. It will be one of my next PRs. Not blocking issue, but we need remove the duplicate efforts.
2. This unit test failure is not caused by this PR. The same failure occurred in April 2025 and was partially addressed in PR-1049:

#1049.

https://github.com/aws-observability/aws-otel-java-instrumentation/blob/release/v2.11.x/exporters/aws-distro-opentelemetry-xray-udp-span-exporter/src/test/java/software/amazon/distro/opentelemetry/exporter/xray/udp/trace/AwsXrayUdpSpanExporterTest.java#L42-L44

PR-1049 fixed the failure in one location but missed another instance. The latest iteration addresses this.

[thpierce]

I assume you are saying the SPI project Vancouver team made. Yes, some code from that folder need to be removed as upstream already set the attributes. It will be one of my next PRs. Not blocking issue, but we need remove the duplicate efforts.

Ack, as long as it's being tracked.