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Basically, gov v1 allows any message to be submitted as a governance proposal, while gov v1beta1 requires specific proposal types to be registered and have their own handler.
Gov v1beta1 is still supported for legacy reasons, however all core SDK modules have already migrated away from using it.

You can read more about it here: https://github.com/cosmos/cosmos-sdk/blob/main/x/gov/README.md#legacy-proposal

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Answer selected by rootulp
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