1. When using Embedded Cache in clustered mode , how to do versioned operations ? Or is there any equivalent method?
you could use conditional operations:
cache.replace(k, expectedValue, newValue)
2. Can we cluster a Hot road server with Embedded cache? In this case how to do a versioned update?
A hotrod server is just a layer on top of an embedded cache instance, that opens a socket, receives remote requests and forwards them to the embedded node. You can/should have a server instance collocated (same JVM) with an embedded instance.