Avoid Create Group in office 365 when Power BI workspace gets created

Hi vnaga85,

Currently, we cannot avoid creating office 365 groups when we create an App Workspace in Power BI service.

From this document, 

Over the next few months, we plan on the following enhancements to app workspaces:

• Creating app workspaces won't create corresponding entities in Office 365 like group workspaces do. So you can create any number of app workspaces without worrying about different Office 365 groups being created behind the scenes (you can still use an Office 365 group’s OneDrive for Business to store your files).

Best regards,

Yuliana Gu