strange KDE update versions

In the repos I see updates such as
openSUSE-13.2-Update | kwin | 4.11.12-2.2 | 4.11.17-21.5
which is fine but also many which say something like
openSUSE-13.2-Update | kwalletmanager | 4.14.2-1.1 | 14.12.3-16.1

The new version 14.12.3 looks like a typo for Is this OK or should I avoid doing the updates?
I’ve already updated the base parts of KDE.

This appears to be a re-numbering to separate the applications from the basic desktop, probably in preparation to the move toward Plasma 5.

No, it is not.
This package is part of the KDE 14.12.3 release (14.12 means December 2014), see here:

The next version will be 15.04. (i.e. released in April 2015)

The workspace developers decided to stay at version 4.11.x 1.5 years ago already, since then only bugfixes are allowed for KDE4’s desktop.

Is this OK or should I avoid doing the updates?

It is ok and intended.

Not quite.
That renumbering happened because the latest KDE Applications releases (since 14.12.0 in December) also contain some KF5 based applications. So a version 4.x would be completely misleading.

The desktop is a completely separate thing. And KDE4’s desktop version already stayed at 4.11.x when KDE 4.12 (one year ago), 4.13, or 4.14 was released, even before Plasma5, to indicate that only bugfix updates will follow any more.