Device telemetry collects data about your next-generation firewall or Panorama and shares it with Palo Alto Networks by uploading the data to Cortex Data Lake. This data is used to power telemetry apps, which are cloud-based applications that make it easy to monitor and manage your next-generation firewalls and Panoramas.
source: https://docs.paloaltonetworks.com/pan-os/10-1/pan-os-admin/device-telemetry/device-telemetry-overview
PS a side note, for future use: iff your organization does not have a Cortex Data Lake license, then you must install a device certificate in order to share this data. -- so there are 2 options in case this ever comes up in the exam or in your job.
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