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That's true, you can also use it for conversion. But people don't think of it as an "authoring" tool or "editing", it's just a video "player". It can also open a lot more file formats than are listed, but that isn't the point of this page, so we don't list every possible thing it can do, just the gist of it to get the point across.
I think this is one of those things where, though technically VLC can produce files, the idea being conveyed here doesn't really benefit from being overly technical. Marksheet is meant to be an easy-to-read guide for beginners. That means being less technical and getting to the core of a point is more important than being technically correct. A beginner could just go read the entire HTML or CSS working draft of the specification, but that's too technical for a beginner.
Perhaps a better example besides VLC could be used. I can't think of any video players that can't also produce files as well though. VLC really seems like the best, well known, option (especially if you want to pick something that is cross-platform and recognizable).
On this page you claim that VLC can not create files, but actually it can create video and audio files.
Otherwise very good work!
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