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.dmg, .pkg, .app Explained

File TypeWhat It IsWhat to Do
.dmgDisk image (a virtual drive)Double-click → drag app to Applications → eject the image
.pkgInstaller packageDouble-click → follow the wizard (installs system components)
.appThe app itselfDrag to Applications folder. Done.
.zipCompressed archiveDouble-click → extracts the .app. Move it to Applications.

The #1 Mistake

Running an app directly from the .dmg without dragging it to Applications. The app works but behaves strangely: no preferences saved, updates fail. Always drag to Applications first.