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AFAIK using setup() is actually a cargo-cult practice and discouraged by the Neovim maintainers.

echasnovski seems to like it (and he's a maintainer I think)

His use case is mini.nvim, a huge bundle of plugins where you most likely don't want each plugin initialising automatically.

He and I are on very opposite ends of the "setup spectrum", but we have found common ground, which is that you shouldn't cargo cult it: https://github.com/neovim/neovim/pull/35600/files