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I know it can create a dummy display, but can it create a window on the real display showing the contents of the virtual display?

That seems to be the flagship feature of DeskPad.

Yes. It can also do windowed mirrors of real displays. That being said, BetterDisplay is $19 USD and crams in a ton of functionality, so for those who just want a single virtual screen for screen sharing (and don't need/want anything else), DeskPad is probably the better option due to its simplicity and being free. But yeah, if you want something more advanced, BetterDisplay is great.

Good to know, thanks!

Which feature do you use? Would like to try it as well.

I have a big comment around my usage of BetterDisplay in another thread.

But not open source? I mean, its fine if its closed, but no point in linking to a github repo, and if so its not a like-for-like.

Edit: I see looking at the branches an old version was open source some years ago.