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Short answer
Put domain models in the domain layer when data and UI use them, and keep them separate from API models so the app's shape stays independent of the transport.
Explanation
Flutter's guide puts models under domain, while repositories transform raw data into the shape the view models need. Do not put external DTOs in the UI just because they are ready.
Common mistakes
- Making the API's model a permanent UI contract.
- Copying a model in every layer with no mapping or clear reason.