This option can be updated only at time of app creation and first realease 
1. Firstly you need to change the "App signing preference"
2. Select "Export and upload key from java keystore"
3. Follow steps mentioned there and get keystore.zip
4. after uploading this zip and try again. Now key will be accepted!

Some links helped:
https://stackoverflow.com/questions/54314838/googleplay-wrong-signing-key-for-app-bundle
https://confluence.atlassian.com/doc/setting-the-java_home-variable-in-windows-8895.html
https://medium.com/@the_manifest/how-to-publish-an-app-on-google-play-a-step-by-step-guide-80f9f533e370