Difference between duplicate(copy/paste) vs option(alt)+Drag

Command+D is different from Option+Drag. But I’m not exactly sure how they are different and when you use one over another. For instance, let’s say you have a component set consisting of three icons(Facebook, Instagram, Tiktok). Command+D => Component/Variant4 whereas Option+Drag => Component. My guess is that Command+D or Copy/Paste creates a double of the selected element whereas Option+Drag creates an instance of the main component. In some cases, they are interchangeable but in some cases, they’re not. It’s somewhat confusing.

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I have the same issue. I was told by Chatgpt that they’re different, but they’re not. Copy-pasted versions are instances as well. They all have the same empty purple diamond with no differences in their values that I can see. Inspect the code using the right panel and they all have the same CSS values. I can be wrong, but as far as I can tell, duplicating, command+dragging, copying and pasting all create the same instance.

I was trying to figure out why/how to get my auto layouts to transfer over from the main component. It turns out that since I made some separate adjustments to the individual variants, it broke the connection in a way that adding auto layouts to the component wouldn’t affect the others for some reason (but making edits to element sizing/location/text/etc. would as one would expect).