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RFC: seperating work and personal data/environments
(sh.itjust.works)
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If you want to have some applications only available to one user you could install them as user flatpaks or AppImages.
Personally I would just create two activities in KDE but you seem to want more separation.
Maybe encrypted home folders so that you can't easily access one from the other. Although permissions should be enough for that.
I dont know what an activity is but I'll have a look.