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I've noticed that some extensions I download have them installed in the data -> runtime folder as well as the extension folder.
What exactly is the difference between having them in the extension folder itself or the data -> runtime folder? Do I need to make sure all of my extensions are in both folders? Or is there a specific purpose for this?
The difference in the copy of the extension in the data/runtime folder is that it doesn't contain all the specific code needed to interact with the extension within MMF (such as menus and dialog boxes) - this is the copy used in compiled MMF applications. Extensions without a copy in the data/runtime folder will still work fine, they just won't have the small space saving that comes from using the specific runtime copy.
Makes sense. So basically some need it, some don't.