The correct option is It simplifies community contributions and maintenance by keeping the action versioned independently.

This choice decouples the action from any single project which lets you manage its lifecycle with tags and releases and accept contributions without affecting downstream repositories. Consumers can reference a stable tag such as v1 or a commit SHA which provides predictability and safer upgrades across many repositories. It also centralizes issues, documentation and continuous integration for the action which makes maintenance easier for both internal teams and the community.

It eliminates the need for version control is incorrect because actions rely on Git for history and collaboration and publishing one for broad reuse increases the importance of tagging releases so users can pin exact versions.

It limits the action's visibility to the repository that hosts it is incorrect because a dedicated public repository increases discoverability and allows any workflow in any repository to reference it.

It adds overhead and makes management more complex is incorrect because isolating the action in its own repository actually reduces coupling and simplifies ownership, reviews, releases and support at scale.

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