What is meant by application is hosted within w3wp.exe (In-process) or application.exe/dotnet.exe(outofprocess) in hosting terms

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For example, AppDomain is a logical container and for security and separation (sandboxing), an application runs within an AppDomain. Here I can understand the term "within" (something inside).

But what does it mean when we say the app is hosted within w3wp.exe, is it a boundary? Or, the application really executes within this exe, magically?

If it was stated as the application runs by w3wp.exe then I could digest it.

I am really new to the programming world so, I am asking this, please don't be rude.

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