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The app-root folder in the /dist directory contains the compiled and optimized version of the Angular application with all the necessary files such as HTML, CSS, JavaScript, images, etc. This folder serves as the root folder for the application when it is deployed on a server or hosted on a web server. It contains all the files that are required to run the application, and the structure of the folder is optimized for efficient delivery of the application to the end-users. The presence of the app-root folder in the /dist directory after building an Angular application is necessary for deploying the application on a server or hosting it on the web.