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Its whether the client does any interpretation of the data it receives. Screen content contains codes that are not necessarily displayed. For example vt100 screen emulation uses esc[H to put the cursor in the home position (top left). A normal telnet session would interpret this as a cursor move, where as a raw session would actually display [H which wouldn't mean anything to you and would make the screen info hard to read. So it doesn't affect what is sent, just how its interpreted at the client end. VT100 is just one example of the invisible stuff that gets sent but you get the idea.
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