How does 'mute' work in #Nostr?

I know that if I mute a spambot, I don't see its notes anymore.

But say that A mutes B.

A writes a note, then B writes a reply (but A does not see it).

Then C replies to B's note. Does A see C's reply, and get confused as to what C is talking about? Or is A left out of that conversation altogether?

#asknostr

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Discussion

If A mutes B, then B's notes shouldn't be displayed to A.

If C replies to B, A will still see C; but potentially with a marker of "this author has been muted".

And if C quotes or reposts B’s note then A will see it. At least on Damus.