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Saw that video today too! Good times!
but they called it an “immutable” Distribution 
I know the ublue devs HATE THAT. It’s “cloud native”! 
I’m still not clear on how Bazzite differs from immutable. I have a working definition of immutable in my head that Bazzite meets.
Immutable in this context, implies that everything in the filesystem is read-only, meaning it cannot be modified or changed by the user. This is actually not the case in universal blue images. Depending on user and administrative privileges, certain parts of the OS can be modified.
Note that Bluefin LTS which is based on CentOS 10 has additional restrictions/security measures in place so that one may differ a bit from the rest in terms of what can be modified or with what privilege level (user vs admin).
Does it have to do with how much of the system is kept in the read only space?
Yes, so some basic rules are:
-Most things (if not just about everything) in the home folder can be modified by the user without requiring a password
- /etc and /var generally require a password or use of sudo in terminal to modify,
Anything in: /usr /opt are generally read-only….
(some shell scripts may be used to modify /opt ….but this should be avoided unless you know what you are doing)
There may be other areas that can potentially be modified but generally should not be touched. Most changes in those areas would likely be overwritten by a new image after a system update.