The discussion centers on the conditions for differentiability of functions of multiple variables, specifically f(x,y). It clarifies that for a function to be differentiable at a point, it must have continuous partial derivatives in a neighborhood around that point. The participants analyze two specific functions, f(x,y) = 2x - y and f(x,y) = ln(2x² + 3y²), discussing their domains and differentiability. It is emphasized that while the existence of partial derivatives is necessary, it is not sufficient for differentiability. The conversation concludes with the realization that the first function is differentiable everywhere in R², while the second function is not defined at (0,0).