Pro-Europe sources within the party branded the move a "democratic outrage".
Corbyn said he thought the message about what a Labour Government could do would reach out to those who now see independence as the best route to change: "We would challenge austerity, and we would invest in housing, health and education in Scotland and across the country".
Coun Anne Western, leader of the Labour group on DCC, responded: "This is disgraceful".
Theresa May and Jeremy Corbyn both tried to set out their vision for Brexit in major speeches over the past two weeks - but voters don't seem to be any the wiser. One of Mr Corbyn's slogans is "standing up, not standing by", but in this case he has not stood up, but instead he actively joined in'.
The party's executive has put down a policy screed of their own (in such a last-minute fashion that it didn't make it into the conference agendas handed out to delegates) which takes precedence over the others. There are also said to be links to articles from far-Right websites.
She added: "It will be disappointing if members who support single market membership don't get the opportunity to put that to a vote, but the campaign to protect jobs and defend workers' rights will continue".
"If any of those individuals are associated or members of the Labour Party, we will take firm action against them", he said.
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Following the meeting on October 3, 2017, in a thread contributed to by activists who overtly disseminate anti-Semitism, Corbyn acknowledged those who organized the event, and apologized for his absence.
But he said the conference would also have the option of backing a "unifying position" put forward by the leadership that would keep the single market option open but "which doesn't commit us at this point".
"That is why retaining membership of the single market and the customs union is such an important part of any political strategy for Scotland".
It is understood disciplinary procedures, including suspensions, have been initiated against a number of members of Palestine Live where they have been found to be Labour members, though it is understood that at least one, who had been presenting as a Labour member, was not.
And he insisted that the option of a Norway-style agreement after Brexit was something that was "not entirely ruled out" by the party.
A spokesperson for Corbyn stressed in a comment to The Guardian on Thursday that Corbyn is not alleged to have said anything anti-Semitic in the group.
And he will accuse the Conservatives of forming a "divided government that has no clear idea of what it's doing, what it wants, or where it's going".
"We can not be held back inside or outside of the United Kingdom", he added.
"Make no mistake about it, reduced access to European markets means fewer economic opportunities for people in the United Kingdom".