That apparently is their plan, within the confines of it being an under 23 team with three over age players.
It's common as muck in many European (non UK) leagues, where bigger clubs often have their Reserve team playing only one of two tiers below the first team.
The common complaint is that one week an opposition club in the same league as the Reserve team may just play a team of academy youngsters. But the next week another club may come up against that same Reserve team stacked with a few first team squaddies in need of playing time.
Like AFC may not send many/any ALM extras to a 2 week Hub in far flung Honiara (no direct flights from Auckland, ie 7-9 hours flying time). But when Auckland hosts it's planned 2 week Hub, it will be much easier for AFC to strengthen their Reserve team with surplus ALM squaddies.