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You should create the relevant desktop entry in ~/.local/share/applications. Your entry already contains necessary information, although I also recommend you to add an icon.
Most desktop programs today use the Shared MIME-info Database to determine file types. The MIME type definition for .desktop files is in the file /usr/share/mime/application/x-desktop.xml. In Ubuntu 16.04 the relevant lines are at the end of the file: <glob pattern="*.desktop"/> <glob pattern="*.kdelnk"/> So most desktop programs will ...
This is the correct entry with correct syntax: [Desktop Entry] Name=btsync Exec=/home/ohto/Progs/btsync Icon=un-reboot.png Type=Application Terminal=true
For the answer to your first question, the answer is yes ... and no. Yes because this is part of the syntax the launcher manager program uses. No because it does not make it a .desktop file. The second question the answer would be yes on file creation, but you can edit it to remove the .desktop. This is because when Ubuntu creates the file, in the binary ...
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