The Make movie Action button will read a SHOW INSTANCES command in the script when the button is clicked on in Capture, Code or Report mode and then make a movie.
A Toggle button is generally used in scripting with BUTTON STATE commands. For instance, a script can read the state of the button and change its name based on whether the toggle button is up or down. They do not create an instance or a label so it will not have any effect on the Timeline or Matrix.
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