Subject: Once the code is compiled, you no longer need the .lss file
Source code is not required for code to run, unless the source wasn’t compiled when it was saved (which can happen with shared actions that reference undefined variables and functions). So the lss files do not need to be present anywhere in the runtime environment.
However, I dislike doing this because then you get to have potential problems of different developers having different versions of the lss file stored on their disk, so that if the code fails for some reason it’s hard to be certain what version they were running. I prefer to have one template of reference with all code in the ntf, so that when you go to edit the code you know you’re using the most recent version.
…when you can use hide design instead and not expose the source code at all. If you don’t want to hide the entire design, you would maintain the code in a separate template of non-hidden design, replace the design into a hidden-design libraries template, and then inherit the design elements into the template or nsf where you didn’t want to expose the source.