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As far as I understand bash is the default shell in Ubuntu, so why does /bin/sh point to /bin/dash?

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The default login shell is still /bin/bash. What was changed was the default system shell /bin/sh.

The change of the default system shell started from Ubuntu 6.10, and the main reason to switch was efficiency.

Here you can find complete information about this change: Dash as /bin/sh

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