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This is not what they are saying.
A crash in the window manager takes down all running applications
This does not happen on Xorg. If the WM crashes, it’s possible to kill it and restart it without exiting running applications.
A WM crash does not bring down all the other applications… but an X11 server crash definitely does!
In wayland they are the same program (a.k.a. the compositor). User applications can be designed to survive a compositor crash, though many are not able yet