After a closer inspection my toolchain does not offer the new expected application (app_usb_aud_xu208_xhra) for this migration.
I may have gimped something up during the merging process but observing that each application that DOES appear after the import offers more files inside their folder than this new application.
Here is the merged folder for this new application (does not appear after the import):
here is a random application that appears ok and does compile:
Wondering if we are missing some additional support files. Does anyone else have this working? Sent off an email to support. Let us wait for their comments.