They are not equivalent.
I think the confusion is that when working with an interactive rebase you're working with individual sets of changes, not the complete content up to that commit. Think of it like rearranging a series of patches.
When you say drop 577dab2 add navbar
it is as if that commit never happened. There is no navbar for 432fda1 to fix.
pick 577dab2 add navbar
fixup 432fda1 fix navbar bug
You're saying "pretend I never made that mistake and did it right the first time".
This turns the changes in both commits into a single commit, and uses the log message for the picked commit. You wind up with the changes in both 577dab2 and 432fda1 in a single new commit with only the "add navbar" log message.
drop 577dab2 add navbar
reword 432fda1 fix navbar bug -> reword it to 'add navbar'
You're saying "pretend 577dab2 never happened, I never added a navbar" (I'm ignoring the reword, its not relevant).
This throws out the changes made in 577dab2 (adding a navbar) and you're left with just the changes in 432fda1. Since 432fda1 is trying to fix a navbar that was never added, you'll probably get a conflict.
the implementation is only "meld into", that is, everything that is within the fixup commit (432fda1) will only be "transferred" to the previous commit (577dab2) and the name of that previous commit (577dab2) will be taken.
Side note: Git never changes a commit. It only creates new commits.
Let's say your repo looks like this.
A - B - C - D - E [main]
Let's say you fixup C
. Git creates a new commit with the changes in both B and C and rewrites the changes of D and E on top of the new commit.
A - B - C - D - E
\
BC - D1 - E1 [main]
The old B, C, D, and E commits will be garbage collected.
For more on why it works this way, see What is a Git commit ID?.
But if you say drop B
Git will now try to rewrite C on top of A. It's as if B never happened.
A - B - C - D - E
\
C1 - D1 - E1 [main]
The changes in C are now applied to A. If C's changes depend on B (as in fixing the navbar introduced by B) then you will get a conflict.
Let's look at it another way. Let's say 577dab2 is this.
--- a/dir1/file
+++ b/dir1/file
@@ -11,3 +11,8 @@ and some more
and here is more
and then this
+
+from the first commit
+
+Back Home Escape Next
+
And 432fda1 is this.
--- a/dir1/file
+++ b/dir1/file
@@ -14,5 +14,6 @@ and then this
from the first commit
-Back Home Escape Next
+Back Home Leave Next
+from the second commit
And you do a fixup...
pick dedbeef something else
pick 577dab2 add navbar
fixup 432fda1 fix navbar bug
The result is a new commit containing both 577dab2 and 432fda1's changes with 577dab2's commit message.
--- a/dir1/file
+++ b/dir1/file
@@ -11,3 +11,9 @@ and some more
and here is more
and then this
+
+from the first commit
+
+Back Home Leave Next
+
+from the second commit
But if you drop 577dab2 and reword 432fda1...
pick dedbeef something else
drop 577dab2 add navbar
reword 432fda1 fix navbar bug
This is the same as deleting 577dab2 and trying to apply the changes in 432fda1 on top of dedbeef.
pick dedbeef something else
reword 432fda1 fix navbar bug
dedbeef doesn't have a "Back Home Escape Next" line to alter, so this will result in a conflict.