Java version not updating for test listener

I am using Katalon Studio and Runtime Engine version 8.3.5/8.4.0 on Windows 10.
I am using an external jar compiled by jre17 in my tests. I changed the java version to jre17 in both Katalon studio and KRE.
When I import and use dependencies from this jar in a Test Listener , I get an error in the KRE log saying: com/test/TestClass has been compiled by a more recent version of the Java Runtime (class file version 55.0), this version of the Java Runtime only recognizes class file versions up to 52.0 , before any test execution starts or any logs from test scripts are printed and tests execution stops.
The indicates that java version has not changed from the default version.
However when I move the same imports and and same code to a keyword, the test case works as expected and prints the java version and java home that I had set.
What could be the reason for this issue, does the test listener not use the same java version as the rest of the test project?

Hey Aasheesh @aasheesh.jha. For this type of problem, we need to check with the Product team about the Test Listener.
Given you paid for Runtime Engine, you can submit a ticket on the customer support portal here, so the Product team can examine your issue.