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We're trying to figure out how to package a solution for customers,
Ideally, we want to have a deployment package from VS and upload to LCS. That's great for deploying our ISV solution on Live and Test environments,
But we need to allow the customer to see our code in their dev environments, extend the solution, subscribe to our delegates, use events, and so on... and the binaries don't contain code, so customer can't do any of those, right?
If we want to allow such practice, we have to deploy model files instead? or are we missing something?
If you want your customer to see the code or debug it, you have to give your models to them.
If you don't want to show the code, but want to allow them still writing extensions, that's possible if your customer installs your deployable package in their source control. Such objects will show with italics font in AOT, and you can't see the source code. But you can reference and extend them. See this article for more details: https://docs.microsoft.com/en-us/dynamics365/unified-operations/dev-itpro/dev-tools/manage-runtime-packages
Please note that your customers should anyway install your solution (deployable package or models) in their source control. Then their build process should produce one deployable package, containing all custom and ISV code. This one package should be deployed to test/prod. In the future the deployable package must always contain all custom/ISV code. Solutions that are not in the package that is deployed, will be wiped out. You can already see a warning about this in LCS if you deploy a package that doesn't include all packages that are already present in the target system.
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