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In addition to not getting install status back, you also wouldn't be able to use general catalog items for license reclamation. I don't recommend that approach.
What is the reason you're trying to reduce the number of collections? There really shouldn't be a performance impact. App Portal creates direct membership collections with no evaluation schedule and no incremental evaluation, so having a lot of collections will not keep collection evaluator busy. Also, all of App Portal's collections are isolated to their own folder, so they shouldn't get in the way or be confused with other collections.
Can you tell me why you need your other collections and AD groups? It seems like a lot of unnecessary overhead to have to manually create/maintain collections and AD groups. Why not just use the App Portal collections and eliminate your other collections?
Is it possible to share this script with me as well.
Thanks in Advance
I'm not sure what script you're asking to be shared. If you're referring to the post from Charles about using the API methods to attach an existing deployment to a catalog item, we don't have a script already written for that, but the API's are available. Have you seen this other post from Charles describing how to call App Portal API's from PowerShell? That may be of help to you in writing a script to leverage these API methods.