Can anyone please explain the difference between \"selenium server\" and \"selenium server standalone\" jars and use of both.
Which one to prefer? When to use which
I believe that "selenium server" jar IS "selenium server standalone" jar. If you look at http://www.seleniumhq.org/download/ - there is not such thing as "selenium server".
Grid and RC servers are in the same jar file. RC ("Remote Control") is deprecated in Selenium 2 and emulated in Selenium 3.
Lazily, "selenium server standalone" can be called just "selenium server", because that's what it is: proxy to selenium grid or whatever remote browsers you want to automate. "standalone" is HTTP server.
http://www.protractortest.org/#/infrastructure hints at difference in terminology: it is "standalone" when running locally, and "server" when running (standalone jar) on remote grid (which is a http server assigning jobs to multiple selenium servers, each running "standalone" jars).