Are private OS entitlements possible with iOS In-House application?

With an Enterprise, In-House application, is it possible (and legal) to use a private entitlement, such as "com.apple.frontboard.launchapplications”?

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Don't do this. Your question is answered in the license agreement your team agent agreed to when signing up for the Enterprise Apple Developer program. Only the public API's are expected not to change between releases. Anything private can change without warning.