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Questions on Transparent Proxy vs Isolating Proxy

I have read the available documentation on differences between Transparent vs Isolating Proxy, and it’s a bit confusing (I am not a technical person). This is how I understand it, is it correct?

  1. with Transparent Proxy:
    Whonix-GW -> entry node, guard node, exit node -> Whonix-WS
    = circuit is the same for all applications within Whonix-WS

  2. with Isolating Proxy:
    application 1: Whonix-GW->entry node x, guard node y, exit node z -> Whonix-WS
    application 2: Whonix-GW->entry node y, guard node z, exit node x -> Whonix-WS
    =circuit is randomly selected for each application -> each application has its unique circuit

Is it correct? Also, I am not sure how interactions work between Tor and the WS, as far as I understood, all traffic is being done in the GW, right? For instance, if I do a curl command in the WS terminal, traffic is actually being sent back and forth by the GW, which acts as a router and then redirects the traffic to the WS is if it was behind a NAT? Is it correct?

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