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No, they don't. Each character is in their own world, where, let's say Char 1 clears out a cave of Mirelurks and Yao Guai. Char 2, when s/he reaches that cave, will still have to deal with the Mirelurks and Yao Guai in there because Char 1 and Char 2 are in seperate versions of the wasteland.

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