Creating a new SmartObject from the SharePoint List Service Instance causes issues when trying to Package and Deploy workflows with the SmartObject. The original SmartObject can be brought into the package and this causes the categories to get out of sync.
It is recommended to revert the changes made to the SharePoint list and then follow this process for to Package and Deploy SharePoint SmartObjects. In a normal SharePoint PnD process, we have to add the SharePoint List template to the Target Environment before PnD. This way the PnD tool has a list/category to link to when deploying the package.
During this process, since the SharePoint list should be exactly the same between the Target and Source environment, we can appify the SP list thus creating a New SharePoint SmartObject that will function the same as the Dev environment. When the deployment tool is analyzing, we can link up the SharePoint list and select 'Use Existing' for our SmartObjects. This should prevent the DEV category path from being brought over to the Target environment.
Please note that K2 does not support making any changes to the SharePoint Service Instances. See the documentation for more information below:
You cannot manually register, refresh, modify or delete service instances for the SharePoint service types (unless directed by K2 support to do so). You must use the K2 for SharePoint App registration wizard to create and manage Service Instances.
K2 integrates with SharePoint Lists and Libraries by appifying them. SmartObjects of the structure of the List or Library are created in K2 SmartBox, making the data of the List or Library available for use in SmartForms and workflows.
"Refreshing, modifying or deleting an existing service instance of this Service Type should only be done if instructed to do so by K2 Support.