Hello Abhinav,

Thank you for reaching out to us.

As for your question (Do I need to wait for all existing users to be deleted 
from the existing custom audience (user list) before adding new set of users 
?), as per best practices, you would need to complete first that delete request 
before adding new users. There are instances wherein multiple processes are 
trying to update the same entity at the same time. With that, you might 
encounter the CONCURRENT_MODIFICATION error.

Regards,

Mark Kevin Albios
Google Ads API Team
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