If this is referring to Oracle EBusiness suite (since it is referring to 12.2.4) at the time of this writing, Oracle latest db version is 12.1.0.2.
It is recommend one contact Oracle to find out what parameter they need.
Toad doesn't know if it's a patch/run instance. Toad just connects to whatever one tells it to connect to (and really, it's the Oracle client that makes the connection, not Toad). Whatever that points to is what the user is connected to.
When you go to Database -> Administer -> Oracle Parameters, Toad is basically just showing you the contents of the V$Parameter view in the database and giving one a GUI to change them.
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