You can exclude files from Time Machine in two ways: by path or by file. Excluding by file attaches a bit of metadata to the file using the extended attributes API, as described above. Excluding by path registers the path with Time Machine itself (somewhere in a plist that backupd reads, IIRC).

Files excluded via extended attributes remain excluded if you rename or move them. Excluding by path means that any file at that path will be excluded; if you rename or move the file it will no longer be excluded.

(This all applies equally to folders, in case that doesn't go without saying.)

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