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If I visit Settings --> Modules --> Apps and install one of the Apps from there, does a module folder get downloaded to my Odoo server?

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Yes.


Check the logfile for the location, which will be something like:

/home/<user who was created to run Odoo>/.local/share/Odoo/addons/8.0/

You can move these to any directory in the addons path - which I do periodically to keep all custom modules in one place.

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