When pressing modifier keys (Shift or Caps Lock) on macOS Sierra java applets crash

FULL PRODUCT VERSION :
Java 8 Update 101

ADDITIONAL OS VERSION INFORMATION :
  System Version: macOS 10.12 (16A323)
  Kernel Version: Darwin 16.0.0

EXTRA RELEVANT SYSTEM CONFIGURATION :
Tried through multiple browsers (FireFox Safari) . No issues before macOS sierra.

A DESCRIPTION OF THE PROBLEM :
Java applets the emulate RDP or Terminal crash when modifier keys are pressed



STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
On macOS sierra try visit https://www.rbvi.ucsf.edu/home/tef/ssh/ and once the app is loaded press shift.

I get the same behaviour when using an RDP java applet but cannot share those details as they are confidential.


EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
Shift key to work
ACTUAL -
app crashes

ERROR MESSAGES/STACK TRACES THAT OCCUR :
Exception Name: JavaNativeException
Description: java.lang.NullPointerException
at sun.awt.SunToolkit.getSystemEventQueueImplPP(SunToolkit.java:1090)
at sun.awt.SunToolkit.getSystemEventQueueImplPP(SunToolkit.java:1085)
at sun.awt.SunToolkit.getSystemEventQueueImpl(SunToolkit.java:1080)
at java.awt.Toolkit.getEventQueue(Toolkit.java:1734)
at java.awt.EventQueue.invokeLater(EventQueue.java:1266)
at sun.plugin2.main.client.MacOSXKeyHandler.notifyFlagsChangedFromNative(Unknown Source)

User Info: (null)

0 CoreFoundation 0x00007fff8f08552b __exceptionPreprocess + 171
1 libobjc.A.dylib 0x00007fffa375dcad objc_exception_throw + 48
2 CoreFoundation 0x00007fff8f085479 -[NSException raise] + 9
3 JavaNativeFoundation 0x000000010d5eb01a JNFCallStaticVoidMethod + 233
4 libnpjp2.dylib 0x00000001391ebc57 flagsChanged + 72
5 SkyLight 0x00007fffa03eb4f2 processDecodedEventRef + 204
6 SkyLight 0x00007fffa03eacdc processEventTapData + 544
7 SkyLight 0x00007fffa03b0e8f _XPostEventTapData + 280
8 SkyLight 0x00007fffa03eaa66 eventTapMessageHandler + 137
9 CoreFoundation 0x00007fff8f0043ad __CFMachPortPerform + 253
10 CoreFoundation 0x00007fff8f004299 __CFRUNLOOP_IS_CALLING_OUT_TO_A_SOURCE1_PERFORM_FUNCTION__ + 41
11 CoreFoundation 0x00007fff8f004211 __CFRunLoopDoSource1 + 465
12 CoreFoundation 0x00007fff8effc165 __CFRunLoopRun + 2389
13 CoreFoundation 0x00007fff8effb5b4 CFRunLoopRunSpecific + 420
14 HIToolbox 0x00007fff8e59cf6c RunCurrentEventLoopInMode + 240
15 HIToolbox 0x00007fff8e59cda1 ReceiveNextEventCommon + 432
16 HIToolbox 0x00007fff8e59cbd6 _BlockUntilNextEventMatchingListInModeWithFilter + 71
17 AppKit 0x00007fff8cc935f5 _DPSNextEvent + 1093
18 AppKit 0x00007fff8d3a38eb -[NSApplication(NSEvent) _nextEventMatchingEventMask:untilDate:inMode:dequeue:] + 1637
19 libosxapp.dylib 0x00000001358bd3aa -[NSApplicationAWT nextEventMatchingMask:untilDate:inMode:dequeue:] + 124
20 AppKit 0x00007fff8cc87fbd -[NSApplication run] + 926
21 libosxapp.dylib 0x00000001358bd14d +[NSApplicationAWT runAWTLoopWithApp:] + 156
22 libawt_lwawt.dylib 0x000000013584a4b3 -[AWTStarter starter:] + 905
23 Foundation 0x00007fff90a47f2a __NSThreadPerformPerform + 326
24 CoreFoundation 0x00007fff8f01b551 __CFRUNLOOP_IS_CALLING_OUT_TO_A_SOURCE0_PERFORM_FUNCTION__ + 17
25 CoreFoundation 0x00007fff8effc6bd __CFRunLoopDoSources0 + 557
26 CoreFoundation 0x00007fff8effbbb6 __CFRunLoopRun + 934
27 CoreFoundation 0x00007fff8effb5b4 CFRunLoopRunSpecific + 420
28 java 0x000000010d4d1465 CreateExecutionEnvironment + 871
29 java 0x000000010d4cd18c JLI_Launch + 1952
30 java 0x000000010d4d34c2 main + 101
31 java 0x000000010d4cc9e4 start + 52

REPRODUCIBILITY :
This bug can be reproduced always.

CUSTOMER SUBMITTED WORKAROUND :
None found