FULL PRODUCT VERSION :
java version "1.7.0_72"
Java(TM) SE Runtime Environment (build 1.7.0_72-b14)
Java HotSpot(TM) 64-Bit Server VM (build 24.72-b04, mixed mode)

ADDITIONAL OS VERSION INFORMATION :
Microsoft Windows [Version 6.1.7601]

EXTRA RELEVANT SYSTEM CONFIGURATION :
Internet Explorer 11 installed
Corporate network, direct access to internet is not allowed.
In Internet Settings only have 'use automatic configuration script' checked with path to valid pac. Java control panel is set to Use browser settings for network.


A DESCRIPTION OF THE PROBLEM :

When using only a pac file in Internet settings - Java network settings does not detect it. The only way to get to a proxy server is to use "Use Proxy Server" option in java control panel (JCP).

'Use Browser Settings', does not use the pac file defined in Internet Settings (it does work if you define a proxy server in internet settings). Additionally, in JCP, if you select 'use proxy server' and define a proxy server then select 'Use automatic proxy configuration script' it still uses the proxy server - even if you enter a path to a pac file.

REGRESSION. Last worked in version 7u67

ADDITIONAL REGRESSION INFORMATION:
I no longer have update 67 installed - information unavailable.
Verified the issue is in both update 71 and update 72 for JRE 7

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
Open Internet Settings,
uncheck 'automatically detect settings'
uncheck 'use proxy server'
check 'use automatic configuration script'
type in valid path to pac file

Open Java control panel, click 'Network Settings' verify 'Use browser settings' is selected.

Attempt to launch applet - log will show 'PROXY=direct'

Open Internet Settings,
uncheck 'automatically detect settings'
uncheck 'use automatic configuration script'
check 'use proxy server'
type in valid path to proxy server

Attempt to launch applet - log will show 'PROXY=name of proxy'

Open Internet Settings,
uncheck 'automatically detect settings'
uncheck 'use proxy server'
check 'use automatic configuration script'

Open Java control panel, click 'Network Settings'
select 'Use proxy server'
type in proxy server, click advanced use for all protocols, click ok
check 'bypass proxy server for local'
click ok

Attempt to launch applet - log will show 'PROXY=name of proxy'

Open Java control panel, click 'Network Settings'
select 'Use automatic proxy configuration script'
type in path to pac
click ok

Attempt to launch applet - log will show 'PROXY=name of proxy' as defined in the "Use Proxy server' section"



EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
The selected and defined proxy pac or proxy server would be used in each case.
ACTUAL -
internet setting automatic script was not detected and all traffic goes attempts to go direct and JCP always uses proxy server if manual or auto is selected.

ERROR MESSAGES/STACK TRACES THAT OCCUR :
No error messages

REPRODUCIBILITY :
This bug can be reproduced always.

---------- BEGIN SOURCE ----------
No source code - issue is with the java plug-in itself.
---------- END SOURCE ----------

CUSTOMER SUBMITTED WORKAROUND :
In JCP, defining one of our proxy servers and selecting 'use proxy server'