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This regular expression matches IPv4 addresses by capturing four octets intended to range from 0 to 255, separated by dots. It uses word boundaries to ensure it extracts full IP addresses without capturing surrounding alphanumeric characters. It is commonly used in network log parsing, text extraction, and input validation. However, it contains a slight inaccuracy as the pattern `2[0-5][0-5]` prevents it from matching valid numbers like 206 or 249.