Hue Motion Sensor --> Motion or Occupancy?

You are correct!

The Motion driver is the legacy driver that many users have installed since before and make use of the standard Zigbee clusters. It uses a counter for resetting the alarm efter an initial motion detection.

The Occupancy driver makes use of the Philips Hue Manufacturerspecific Zigbee cluster enabling support for the device to enable/disable the alarm based on movement and absence of movement.

Installing a new device I advice to use the occupancy driver.

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