Hi @DonStauffer99. I have been away on vacation since my last reply here on the first day of July, and just got back to work this morning. While going through tons of emails and notifications, I came across your replies on this discussion, and on another discussion about iPart member vs factory cell values.
As for this discussion, based on what you said in your previous posts, and the direction you are going, it sounds like you may already have a better understanding about what is involved/required than I do at this point, so I may not be of much further help.
Although I do use 'derive' functionality on a somewhat regular basis, I think I mostly use it for different purposes, and usually manage those associations manually, instead of by code. I usually just leave the 'Link' either suppressed or broken, and only un-suppress that link momentarily on rare occasions to replace the source model file, because those models are usually just for visual, fit guidance/checking, or BOM related purposes. Some of our largest or highest level assemblies include representations of complex purchased products that would normally be an assembly, with lots of parts &/or sub assemblies involved. Some of the components within these purchased products remain relatively 'static', others change in size &/or position, and some are 'optional'. So, instead of requesting a CAD model of every size variation or option difference from the vendor for including in our own assemblies, we request one or two CAD models with all relevant options included, then create a template part to represent their whole product in our assemblies, because parts have more modeling capabilities than assemblies. The template part will include derived parts from the vendor's assembly that never change size, but may change position, then also include sketch blocks of all the 'profiles' of parts that change in size. Those profiles are extruded to extents controlled by named parameters, rules, and a form, which also control the positions of the derived parts. Then if we need to represent a different size or option in one of our assemblies, we can quickly generate our own from a template.
I do not really use much 'skeletal' assembly modeling techniques or include derived components in assemblies for the purpose of directly changing their parameter values from a parent level assembly by code.
Wesley Crihfield

(Not an Autodesk Employee)