What it means to have MSI for a MSM?

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While browsing through InstallAnywhere community pages, its shown that Install Anywhere directly doesn't allow using Microsoft Windows Merge modules.

https://community.flexera.com/t5/InstallAnywhere-Forum/InstallAnywhere-and-Merge-Modules/td-p/68380

However, it suggests that we might need Windows msi installer in order to make merge module work.

What does it mean? Does it mean that we need to create MSI for a given MSM? Please correct me in understanding that.

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