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I would always choose sub-folders over sub-domains. For the most part, sub-domains are treated as separate websites (not entirely, but for the most part), and sub-folders are treated as part the main site. Links to internal pages tend to pass more weight than links to external sites.
More details here: https://www.polepositionmarketing.com/emp/seo-job-knowledge-interview-question-22-sub-domains-vs-folders/
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