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This explains why alyssa rosenzweig (from asahi linux) was paid for so long by Valve. She worked on FEX.

What's fex? I wasn't able to google search it (didn't try too hard admittedly)

x86 to arm compatibility layer they are using to run windows games on the machine/frame

Steam Machine is x86_64

The VR headset isn't and it's cable of both running games standalone and displaying games through the dongle from whatever PC you run.