What are the limitations of Code Coverage?

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Q. What are the limitations of Code Coverage? Code Coverage is not a "silver bullet" of software quality, and 100% coverage is no guarantee of a bug-free application. You can infer a certain level of quality in your tests based on their coverage, but you still need to be writing meaningful tests.
As with any metric, developers and project management should be careful not to over-emphasize coverage, because this can drive developers to write unit tests that just increase coverage, at the cost of actually testing the application meaningfully.