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That's a lot of code, though. I can't imagine common libraries so big. The Linux kernel is less than 100mb.

That would be the source code. The default debian kernel is around 12 MB but it could be much smaller.

It doesn't bundle full random external libraries compiled with debugging symbols and "whatever other stuff".

The neat thing about code is that there's no upper limit on how inefficient one can get.

It's literally "work expands to fill the available time" (s/time/cycles and memory/)