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MyClippings.txt is a simple "log" type file in which a Kindle device locally makes records of highlight / note / bookmark "events" as they occur. It functions like a journal...
That file's content isn't being synced anywhere outside of the device that created it. And it doesn't get recreated after device factory reset or on "sync" with Amazon's WhisperNet servers.
Relevant information that is being synced to and from your Amazon account (syncing being done only for books that are associated with your Amazon account [ = emailed "personal docs" OR Amazon bought books. Not random USB transfered books]) is actually stored inside files that you can find in a folder named "book_title + '.sdr"
So, more to the point of answering your question: if you plan on using popular apps & services (like "Kindle Mate" app or clippings. io website) to extract your existing notes & highlights (to use that information elsewhere) your should backup / copy MyClippings.txt from that Oasis to your PC before returning it.
Those apps that "parse" MyClippings.txt don't need and don't care about actual book files... since all the info they're extracting is self contained in MyClippings.txt file.
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