The discussion clarifies that in the context of group theory, the term t is defined as x*y*z. The expression x*y is not considered a subterm of t because subterms must be contiguous within the term structure. The confusion arises from the associative property of multiplication, which allows rearrangement but does not imply that x*y is a standalone subterm of x*y*z. The definition of "subterm" requires that the term appears as a contiguous segment within the larger term.
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