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miHandleExposures does two things: computes the region for which to generate expose events, and (if the destination is a window) paints the exposed regions with the background. The bit of this conditional we're deleting here asserts that the source is either a pixmap or a window without backing store. The only other possibility is a window _with_ backing store. In the old backing store implementation, this was where you would recover bits from backing store. Since our "backing store" is the redirected window pixmap, we know we've already copied all we could, because CopyArea had already seen the entire window pixmap. So now in that third case, we are still drawing to a pixmap (so there's no background to paint) and we are still not generating events, so we can exit early. The comment above the function about recovering bits from backing store is clearly misleading, so delete that too.
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