Welcome to the wondrous world of floating point numbers. Matlab is a computer program, so it works with binary. Some values are impossible to represent in a binary expansion, so they get rounded. This can be different for each algorithm, so even if the end result can be represented, rounding errors can build up. That is the use case for the eps function: it shows you what the magnitude is of possible errors.
As a decimal example, consider this: (1/3)*3. Assuming I can only store 2 decimal digits, that would be 0.33*3=0.99, even if the correct answer doesn't need 2 decimals.
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