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The Set variable action is specifically designed to assign a value to a variable within a flow in Power Automate. It allows users to manipulate and store dynamic data that can be reused later in the process. For instance, if you need to calculate a result, you could use the Set variable action to store that result for subsequent actions to reference.

This action is essential for managing data flow in automated processes, as it enables the modification of variable values based on user input or outcomes from previous actions. The ability to dynamically set and update variables enhances the flexibility and efficiency of workflows within Power Automate, making it an indispensable tool for developers when building automation solutions.

The other options do not accurately reflect the purpose of the Set variable action. Running a database query typically involves different actions specifically designed for database interactions, defining an environment variable relates to creating configuration parameters outside the flow, and clearing a variable would require a different approach, typically handled by resetting or initializing variables.

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