What role does the 'Customization Layer' play in Dynamics 365 extensions?

The 'Customization Layer' in Dynamics 365 extensions is essential for managing the order in which customizations are loaded during runtime. This is crucial because it allows developers to create multiple layers of customizations, enabling the system to load them in a specific sequence. By controlling the order, developers can ensure that certain customizations override or enhance others as intended, preventing conflicts and maintaining a coherent user experience.

This layering provides an effective way to extend and modify the system without altering the core application directly, which improves maintainability and allows for easier upgrades in the future. Understanding the role of the Customization Layer is vital for anyone working on Dynamics 365, as it fundamentally influences how custom features and changes integrate with the standard functionality of the application.