What about Restored toys?
Like say I buy a junker with major chrome wear and mostly chipped paint which I decide to restore back to something resembling its original condition. Obviously it will never be the same as if it was just out of the box but it would still requiere a lot of repainting and in some extreme cases, modifications like resculpted parts such as joints, electronic mechanisms and even something more notable like a 'prostetic' arm or a leg. However the aim of the whole project is not to kitbash or create a new character but to restore the toy to a playable/displayable condition.
For example, At the Megatron Club meet, one guy said he had a Jetfire without an arm (I think) and was thinking of resculpting the arm himself. If he had gone through the procedure, would it still count?