When using the "Make Library Override" operator on instance collections, keep the overriden collection in the parent collection of the instance empty. Previoulsy the collection would be added to the scene collection, which was confusing and not what users expected. It was placed there for a reason after all. Part of T76555. Reviewed by: Andy Goralczyk, Bastien Montange. Differential Revision: https://developer.blender.org/D7626