Yes, frontend-app-ora via a Tutor plugin would be the recommended way to do this. In particular, it would be a plugin that adds an MFE to the list in tutor-mfe. Roughly, your plugin would have to do this:
In other words, you got it right. (I just changed the variable names to match current usage in tutor-mfe.)
As for your second question, yes, this MFE is meant to replace the regular XBlock view. It is somewhat controversial in the way it achieves this, though. In the future, we’ll be looking more torwards what we’re calling “Xblocks 2.0”, a concept we discussed at a summit a little over a year ago. Which is to say, it is very likely that we’ll deprecate frontend-app-ora when we get around to implementing that.
Is there any additional configurations or steps that I am missing?
If there is any relevant documentation that I can refer to for ora mfe configuration in tutor?
Unfortunately, as you’ve probably already seen, there isn’t much in the way of documentation for this MFE.
What I recommend, since you got the MFE up and can access its UI, is for you to try to trace the edx-platform URLs that are requested, then look at the code and the backend logs. It’s very likely that you’re missing a waffle flag or feature toggle.