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Is this possible?
-AME watches a folder (that is a SD card)
-When new files appear, it combines (stitches) all of the videos it finds
-It encodes the videos using a profile (which adds a watermark image and saves it as a HEVC 5mbps file)
-It deletes the original files from SD card
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I think "When new files appear, it combines (stitches) all of the videos it finds" is problematic because a watch folder always starts processing when encountering the first file in a folder.
This sounds like a good candidate for scripting. See https://ame-scripting.docsforadobe.dev/..