Ah, therein lies the catch. I have not found a way to pass in additional context to recursive workflows, like an identity ID, so recursion probably won’t work in this case. I describe that caveat in the “pros and cons” section:
The simplest approach may very well be to have multiple loops. If you think you will never have an identity with more than 1,000 entitlements, then you would need 10 loops to process each set of 100 entitlements.