Syag,
I was never segregated from non Lubavitch kids, and have never heard of such a thing. I know many Lubavitchers who grew up in communities like Monsey who played with their Chassidish or Litvishe neighbors. If anything, it’s parents of the non Lubavitcher kids who don’t want the Lubavitcher kids to have a “bad influence” on their kids. I personally remember when I was a kid, a non Lubavitcher friend of mine wasn’t allowed to come play at my house by his parents…
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