5.3. Variables affecting the installation process DESTDIR support changes the behaviour of various targets slightly. To install a package after building it, use package-install. package and install don't do that any longer. package-install can be used as DEPENDS_TARGET. bin-install will ask for the root password to install the package and fail, package-install will ask again. This doesn't explain if package-install is usable in non-destdir mode, and will result in both an installed package and a binary package. I am not trying to fix this because I don't really understand the destdir details.
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