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Resizing existing partitions without data loss is a significant action that can be performed during dynamic disk repartitioning. This capability allows users to adjust the size of partitions as needed while keeping the data intact, which is crucial for managing disk space effectively.

The process typically involves using partition management tools that can handle the file system and allocation records, ensuring that existing data remains safe during the resizing operation. This flexibility is particularly useful in environments where data needs change frequently, allowing for a more efficient use of storage.

When compared to other options, resizing partitions without data loss distinguishes dynamic disk repartitioning as a more advanced and user-friendly method for managing disk space. Freeing up space only does not encapsulate the broader functionality of dynamic repartitioning, and formatting all partitions would lead to data loss, which is not aligned with the goal of dynamically adjusting partitions. Removing all partitions and data permanently is an irreversible action that does not reflect the partial and flexible nature of repartitioning, which aims to facilitate data preservation while optimizing disk usage.