I assumed this will be fixed once we enabled the 'auto merge' option and poll upstream sources will be merged without issues on a daily basis, is that the case now? or we're still tweaking the nightly patches to pass?

Fixed code review
Added a change to support repofiles templates.
Instead of stripping the original repo files we will use a template repofiles.
Any changes will be in these template files. File name structure <repofilename>.in
build_reposync_config.sh also support getting list of files (or *), but not a directory.
No need for the reposync file to provide the -c
Additional packages are provided with -p <pkg1> -p <pkg2> ....

Added to build_reposync_config.sh to support getting multiple files / directory

Fixed the code review comments.
Added to vuild_reposync_config.sh an option to create reposync files for a directory/more than one file. Instead of using an external script.

Added a manual test in standard-manual-runner. There is a problem to run the test in the poll upstream sources if the test isb't merged.
Test is tested by manually running it.
The test will fail because the branch can't be push. But we can see the files that were created in the Build Artifacts.
For example: https://jenkins.ovirt.org/job/standard-manual-runner/30/

i don't see anything in progress here, can you update the current tickets to reflect the current status?