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Q. Is it recommended to have one single Deployment Plan for all the composites, or one each for the requestor ABCS, Provider ABCS, EBS etc?
There is no particular recommendation. If you have implemented your services properly and idependently (see https://blogs.oracle.com/aia/2010/11/aia_11g_best_practices_for_dec.html), you can deploy them in any order and it does not really matter if you have one or multiple DPs as everything gets deployed.
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Q. Looking at the DP that gets generated, it looks like they can be manually created, without going through the AIA LCW, BOM generation etc. I know it is not the approach suggested as per AIA flow, but is there anything wrong with doing it?
There is nothing really wrong with hand-crafting the DP except that you lose the overall stream of information from start to end in your development lifecycle. But some customers actually decided to do it this way, though.
Q. What is the significance of the /oracle/product/Middleware/AIA/aia_instances/my_instance/
AIAMetaData/config/AIAConfigurationProperties.xml file? When an interface is migrated from Dev to Test, how do I make sure that this file is updated in Test instance? Is it by manually updating and running UpdateMetaData.xml? or the AID will take care of it?
This file is absolutely key at runtime as services read certain properties (e.g. the actual endpoint of the services that are called) from that file. I would assume your services will fail if you don’t have a valid file on your test environment, i.e. having a section for each of your services.
And yes, the AID takes care of maintaining it. Every service you created with Service Constructor should have a file called AIAServiceConfigurationProperies.xml. When running AID to deploy such a service, it first adjusts the values in that file to match the current environment, then merges the content into AIAConfigurationProperties.xml and finally uploads it to MDS.