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Should work using AppGroups…

Don't need PowerShell to do this, if I understand correctly the intent. --In Studio-- You just create your 2 new Application groups and set the priorities, etc. Filter the applications by the delivery group they are assigned to. Select all of the applications and Drag and drop them over on each of the new Application Groups. Done. You could then remove from the direct assignment of the original delivery group as well, but won't make a difference.

All the applications atm are published to the Prod DG the new DG i created called Pre prod has no applications published to it. I basically want the same prod applications published to the new DG which only contains a single machine which will be used for Vdisk change testing. Just tested this in my lab. I have created two new application groups Prod and UAT and added the production applications published to the prod DG to both new application groups. Do i add both DG's to the app groups and change the priority so for the prod app group prod dg will be priority 0 and pre prod app group priority 1? and vice versa for pre prod app group but other way round ? or only the prod DG to the prod app group and Pre prod DG to Pre prod app group ? what will happen if users have access to both app groups ? wouldnt i have to individually change the priority of the app groups in each app ?

Sounds like what you are trying to do may be something like what we do for a test system. 1 Delivery Group 2 App Groups with the same Apps Prod App group - All users in the delivery group allowed. Machines limited to tag. Priority 1 UAT App group - Limited to test users. Machines limited to tag. Priority 0.