This visual execution shows how Dockerfile instructions ARG and ENV work. ARG defines variables used only during the image build process. ENV defines variables that exist inside the container when it runs. The example Dockerfile sets APP_PORT as ARG with default 8080 and APP_ENV as ENV with value production. During build, the RUN command can use APP_PORT because ARG is available. At runtime, the container can access APP_ENV but not APP_PORT because ARG does not persist. The execution table traces each step, showing when variables are set and used. The variable tracker confirms APP_PORT exists only during build, while APP_ENV exists at runtime. Key moments clarify common confusions about ARG and ENV scopes. The quiz tests understanding of variable availability and usage. The snapshot summarizes the key differences and usage rules for ARG and ENV in Dockerfiles.