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Is it possible to run an OS by installing an OS within the USB/DVD like running an OS in pc/laptop ?

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I think you're looking for a Persistent USB install of Elementary.

I googled around and found this discussion on Reddit and this one on StackExchange.

The TL;DR is that it isn't as straightforward as clicking a few buttons, but it can be done with minimal effort. You'll need a big-ish USB drive too.

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