What is the difference between setting xref = 'paper' and xref = 'x domain' for x = 0.5?

Hello,

I am having a hard time understanding the difference between “paper” and “x domain”. I am showing two examples below. When would they be different? Thanks.

Example 1: Below are two rectangles plotted using xref = ‘paper’ & xref = ‘x domain’ and they plot exactly on top of each other.

Example 2: Below are two text annotations set to the same x value and slightly different y value to not overlap them. As seen in the graph, both start at the same x-coordinate.

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