Application groups associate applications into a common group that you can use as a MATCH criteria. The applications can be built-in, user-defined, or a combination of both.
By default, applying the template to an appliance completely deletes and replaces the appliance's application groups.
If you would rather append the template's groups to the appliance's application groups, then select Merge before applying the template. If both have a group with the same name, the content will be combined on the appliance.