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In CSS, 'display: none;' removes an element from the document flow, while 'visibility: hidden;' hides the element but keeps it in the layout. Transitioning directly between 'display: none;' and other states isn't possible with CSS transitions because 'display' is a discrete property. However, techniques exist to animate similar effects, such as transitioning height to 0 or using opacity. Animating to 'height: auto;' from 'display: none;' is challenging because auto heights can't be transitioned. JavaScript is often needed to calculate intermediate heights for a smooth effect.

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