The difference between login and interactive shells
Interactive
The shell requires user interaction and the commands run in it will normally need to be initiated by the user or ask for input.
Non-interactive
The shell runs from some kind of automated process so it cannot block and wait for input or provide output. Output is commonly written to log files and input is assumed to be automated.
Login
The shell runs as a part of the user login process. Normally serves to set up the system and the user environment.
Non-login
Contrary to the previous category, the shell is not part of the login process.
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