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Dependabot
Dependabot version updates open pull requests for outdated dependencies, and for actions pinned by commit SHA it does that well. It is on Hold because we want one dependency tool, and Renovate covers what Dependabot does plus what it cannot: a version that sits in a plain string, such as the version input of an action step or the default of a composite action, or a mise.toml. Running both means two bots, two configurations, and duplicate pull requests for the same bump.
Hold is not a removal order. A repository with a dependabot.yml keeps it until Renovate's pull requests for the same dependencies look right, and then the file goes. New repositories should not add one.
Only the version updates are on Hold. Dependabot alerts and security updates are a separate GitHub setting from dependabot.yml, they stay on, and removing the file does not turn them off.