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The error "Unable to parse /etc/ansible/hosts as an inventory source" in Ansible indicates that there is an issue with the inventory file specified in the ansible.cfg configuration file. It means that Ansible is unable to read the inventory file or parse its contents, which may be due to syntax errors, missing or incorrect hostnames, duplicate entries, or other issues. This error typically prevents Ansible from executing tasks on the specified hosts or groups, and requires troubleshooting to identify and resolve the underlying issue in the inventory file.