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What does that even mean? NTFS file access permissions (35 years old at this point) are far more powerful than 1970s-era Unix permissions model.

It's referring to the fact that Terminal doesn't have free access to all your files and folders, despite what the traditional file access perms say.

Windows has this too, but it's off by default. I forgot what it's called, that's how often it gets used.

He’s talking about sandboxing and permissions prompts