Is there a way in ArcGIS, Global Mapper, or CAD to generate elevation contours or any sort of surface data from a .JP2 file? I've never been provided this format before and our client is telling us this is a full LiDAR dataset. Can someone shed some light on this for me?
The ArcGIS Spatial Analyst extension has a Contour tool.
The tool works on a raster format which jp2 (Jpeg2) is.
If the raster is using a geographic coordinate reference system (CRS), you might try projecting it to a projected CRS like a UTM zone and see if that gives you better results.
While work is happening to update various algorithms to support the curved surface of a geographic CRS, many tools are designed to work on a Cartesian plane AKA a projected CRS.