Snippets / CategoryProductsItem.html is the snippet used for grid category files. If you are using a list view, this is the Snippets / CategoryProductsItemList.html file.
This file is a list of all li products. It acts as a template that iterates over all the %% GLOBAL_CategoryProductListing %% information for this category. To add a function to the ProductList li category, add it to the fragment, and it will be applied to each element.
Hope this helps.
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