Does Rviz have collision detection like gazebo?

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rviz only renders data, so it does not have collision detection. The option you're seeing is to visualize the collision geometry, which can be different from the visual geometry. A common example is to have a high polygon and detailed mesh for visualization of your robot, but for collision detection you might just use a box or a sphere so it is faster. rviz can render these shapes, but does not do any collision detection with them.