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While using iTerm2, I have noticed that sometimes the color of the title of a tab changes to pink with a loading indicator or changes to red. What do these things mean?

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The iTerm color change of Tab labels indicates activity.

It can be turned of in: Preferences > Appearance > Color tab labels on activity

The help file explains this "Color tab labels on activity" appearance preference as follows:

If selected, tab labels become purple when a non-selected tab has new output, and red when a non-selected tab has output you haven't seen but that is not very recent.

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