Symptoms
When you create a SharePoint list using a workflow K2 automatically creates SmartObjects for the List after the workflow executes. The SmartObjects get created regardless if the option to create the List “Item Reference” is selected or not.
This becomes an issue if one creates tons of SP Lists via workflow and then have to go in after the fact and manually delete the generated Smartobjects since K2 does not automatically delete them once the SP lists have been deleted in SharePoint.
Diagnoses
This is currently as designed. When the “Create List Reference” check box is checked this will allow you to utilize the reference within the workflow design. When unchecked you will not see the reference within the workflow design context.
When the "Create List" wizard is executed it will create a "List" SmartObject as this is what was stipulated within the workflow design.
The "Create List Reference" has no context to the SmartObject creation.
Resolution
This is expected behavior.
However, we will be adding an enhancement to the “Create SP List” for the option not to auto generate SmartObjects for the created List at runtime. This will accommodate for scenario where the SmartObjects are not necessarily needed.