A defect is a variation or deviation from the original business requirements
These two terms have very thin lines of difference, In the Industry both are faults that need to be fixed and so interchangeably used by some of the Testing teams.
When a tester executes the test cases, he might come across the test result which is contradictory to the expected result. This variation in the test result is referred to as a Software Defect. These defects or variations are referred to by different names in a different organization like issues, problems, bug or incidents.
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