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Is this open source?

Yes, most things on Replit are open-source. Just click "show files" on the top-left corner. Also it's powered by Nix, and we wrote a ton about it here: https://blog.replit.com/

It doesn't appear to be open source in the sense that I can't figure out what is actually happen.

It's not clear to me what code I'm running.

1. What is the secure (?) frontend? Is this xterm?

2. What is the outer GUI operating system? How can I interact with it?

Even for hobbies, I don't like building on something I don't understand.

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