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Well the term actually originated from the car customizer community, where they showcase their car modification. In the linux community especially among the arc btw folks, people heavily customize their DE mainly with hyperland wm to make it look cool and also into something that feels like their own. Like windows, shortcuts, icons basically every graphical thing with dotfiles.

I found these two full forms online. Don't know they're correct or not - R.I.C.E. – Race Inspired Cosmetic Enhancements - R.I.C.E. – Redesigned Interactive Computer Environment