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When we use InfoPath Designer to customize SharePoint list form (new/edit/display) and then publish, does it uses the InfoPath Form Services or it just updates the XML file for the list form?
It doesn't change the list form. It uploads and connects the InfoPath file to this list. Every time an item is created or updated, the Info Path file will be shown (rendered in browser) looking like a normal list form.
Required, but never shown