Prompt from List action: the advantages are obvious. The drawback IMO is that the list often has to constantly be updated.
Finder (or even better Pathfinder): I change the list of folders in the favorites multiple times a day, depending on what I am working on. It is therefore a dynamic list. Once again, the advantages are obvious but there is a drawback. In my case the list is long and it's tedious to localize a folder which slows down the workflow.
I would like to create a macro to overcome both of the above drawbacks: a dynamic prompt from list macro "in sync" ie changes as the favorites list changes.
Is it possible to create a prompt from list which would contain the favorites folders and dynamically keep up to date.
So all you have to do is get the things you want listed into a variable, one item per line, in a usable format. You can make a Collection from the contents of a folder, you can "For Each" that Collection to make a list, you can use that list in the "Prompt":
Ah, gotcha... You want to use the Finder's "Sidebar Favourites" rather than the "Favourites" folder (which may be a hangover from an older OS version). Apologies.
To sound a note of caution -- this is almost certainly held in a plist somewhere, and plists often aren't updated in real time. Even if we can find and decode to give names and paths there might be considerable lag between you adding something and it available in the macro...
It can probably be done with AppleScript UI-Scripting, but it's likely to be slow and clumsy.
This works to extract the name of items from the left-hand side-bar of Finder windows on my macOS 10.14.6 Mojave system:
tell application "System Events"
tell application process "Finder"
tell (first window whose subrole is "AXStandardWindow")
tell splitter group 1
tell scroll area 1
tell outline 1
set favoriteSidebarNames to value of static text of UI element 1
set AppleScript's text item delimiters to linefeed
set favoriteSidebarNames to favoriteSidebarNames as text
It takes about six seconds to run and return a text-list in Script Debugger.
On a faster machine that time might go down, but it might not either.
And – this code may require some (or significant) adjustment to work with versions of macOS earlier or later then Mojave.
In my opinion you should roll your own favorites system with Keyboard Maestro.
You could keep everything completely in KM.
You could use a folder full of aliases in the Finder and work with that using KM native actions and/or AppleScript.