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Does this experience count for anything if you want to switch to a law firm later on?
Yes, especially if you wish to join Disputes and can get your judge to write a reference.
do you know people who have switched to law firms this way?
Is this really true? Majorly heard that Clerkship experience is discounted by firms.
Yes. They make you a judge immediately upon completion.
If it is a litigation law firm, I don't think you would be able to appear before this judge.

Your experience of a law clerk can vary massively depending on the judge you work for.