I also used muslin wraps for emergency vomit wipers, to throw over the hood of the pram so if dd was asleep she couldn't get disturbed/looked at/ sun shade/keeping nosy old ladies out.
to snuggle up to until she moved into a big bed, it must have been about the smell or having something to cuddle our hang onto.
Still use them for my 2yo now.
And I think she only stayed swaddled for a few months then wiggled about in bed. She went into a sleeping bag without a problem too...
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