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Here's my solution.
It's dynamic in the sense that the workflow will adjust itself based on the quantity of tools being input...in theory. For full dynamic ability, I would have to make a dynamic append macro. Interesting challenge, but I'm already crunched for time today :) Actually, that was my starting thought. Upon closer review, I summarize to get max records but ended up not using it. The intent was to take that value for a dynamic append macro.
All that being said, my solution is still a $5 answer to a $100 question. It works due to "On " (there's a blank in the quotes) and "Off" strings being 3 characters each. Laziness traded for expediency I suppose! (insert Bill Gates quote here)
Made me remember my high school math. Complex, but dynamic solution. Should allow for any number of Option 1 or Option 2 variables. Likely could make this much simpler, but real work using Alteryx took my time today (Data mining 126 Excel workbooks - no problem).
Here is my dynamic solution in a picture:
The way it works (dynamic):
This workflow helped the user and was a fun challenge for @patrick_digan and @patrick_mcauliffe to chat about offline. Even @JoeM thought that this was just a simple use of an append fields tool (before he dug into it). But Joe's a nice guy and he put the dynamic nature of the workflow as an extra credit option. No brute force here @EstherB47.