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No. The Package Firewall blocks only the specific package versions that Endor Labs flags as malware in the malware database.
The Package Firewall checks each package individually when the client requests it during installation. If any dependency, direct or transitive, contains malware, the firewall blocks that specific package installation and stops the overall installation process.
No. The impact on installation time is minimal.
The package manager resolves version ranges as usual. The Package Firewall checks the resolved version when the client requests it for download. If Endor Labs flags that version as malware, the firewall blocks the installation.