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A workflow-event automation chains workflows without wiring them together. It fires when a run of one of your workflows reaches an outcome, which makes it the natural place for “if the nightly job fails, do something about it”.
A workflow-event trigger never fires on a run that it started itself, or on that run’s descendants, so two workflows cannot trigger each other forever. If a name in workflows does not resolve yet, validation warns that the trigger matches nothing until the workflow exists. Use filter to narrow further, in the same way as for any other kind, and see Automations for the shared fields.