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"My Clippings.txt" is created only for the actual Kindle ereader you create notes on, every time you create a note/highlight/bookmark, this info gets added to the end of that file. All this info is also backed up on Amazon (and used on your devices) as info about the book itself, assuming th ebook is from Amazon or you used send-to-kindle.
You can find it in the "documents" folder on your Kindle.
(I don't think it is created for the Kindle apps, but I cannot be sure as I have't used any of them very much.)
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