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Peter McKinnon discusses the new and improved content-aware fill feature in Photoshop, which allows for easy removal of objects from photos. The updated tool now allows users to remove a wide range of items, such as people, cars, signs, buildings, and clouds, with greater ease and effectiveness. McKinnon demonstrates the old content-aware fill method before showcasing the improved version. He encourages viewers to watch the tutorial for a detailed demonstration of the tool's capabilities.