Extension bundles are installed from a .zip archive or a file system directory. You can use the manage-extension tool to install or update any extension that is packaged using the extension bundle format. It opens and loads the extension bundle, confirms the correct extension to install, stops the server if necessary, copies the bundle to the server install root, and then restarts the server.
You can only use the manage-extension tool with Java extensions packaged using the extension bundle format. Groovy extensions do not use the extension bundle format. For more information, see the docs/getting-started/java-extensions.html directory in your Server SDK download, which describes the extension bundle format and how to build an extension.