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The theory is that most automotive batteries are vented, which means gasses can escape the battery. I suppose the thinking was that you don't want sparks to jump out and ignite any battery gasses.
It's very stupid actually, since this won't happen in practice; it's basically an urban legend. The real reason is that there is no place for the gasses to accumulate - there are lots of cracks in the bodywork for this stuff to go. Not only that, but if you have an aftermarket battery, chances are it's a gel-type and is sealed.
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