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What is wrist rejection ?

Recognizing to disregard input from your wrist/palm when it's resting on the iPad surface whilst one is using Apple Pencil.

...Psychosomatic cognitive dissonance?

I don't own or use Apple products so this takes more explaining for me.

You're typing on your laptop and you don't want your wrist/palm to accidentally trigger anything on your trackpad, so you employ wrist rejection.