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    If you have an advance license try the aggregate polygons tool in the cartography toolbox. Remember tools honour selections. Commented Jan 2 at 17:47
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    Welcome to GIS SE. Thank you for taking the Tour. There are literally an infinite number of ways to do this, so tools have no way to know how you want it done. You need to decide the rules you will use to merge these shapes. Do you want a concave hull? A convex hull? Non-overlapping convex-ish hulls? Your graphic doesn't show what you want, so we can't tell you how to get there. Commented Jan 2 at 18:53
  • The 'Minimum Bounding Geometry' tool with the Convex Hull option would probably work for those two areas you indicated. But it would NOT work for some other areas (such as the crescent shaped area below them). You would need some sort of Concave Hull for this, which is much more difficult to do well (and requires a lot more guidance/rules). For information (and 3rd party tools), see: community.esri.com/t5/python-blog/… and community.esri.com/t5/arcgis-pro-ideas/… Commented Jan 2 at 22:16
  • Maybe try some buffer, dissolve, negative buffer distances? Commented Jan 3 at 9:44
  • The Aggregate Polygons did exactly what I was hoping. Screen Shot attached of the result. I just have to know what the largest distance is between polygons in order to include the entirety of the area in each section. !Solution Image Commented Jan 3 at 16:52