It seems that CS-Cart still uses very old version of owl.carousel.min.js. I believe the version in CS-Cart doesn't support Stage Padding view.
How can I update the owl carousel library so that I can configure a product template to display stage padding effect.
I am afraid, there is no easy way to do it. You cannot simply copy .js file and run new version of library. Try to post your request to the bug tracker as feature request
Thank you eCom Labs for the clarification. I thought it is just replacing the library file. I will do as you suggested.