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If you buy the book, it will transform from a borrowed book into a bought book, and you won't notice anything except that you can keep the book.
If it is a Prime book, not a library loan, then when you return it, it will be purged from your record and notes will not be saved. If you then buy it, your notes are already gone. Library loaned books retain their presence in your Kindle Cloud, even after they are returned, and you would keep your notes from it.
That's the impression I got.
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