Dynamic Code Analysis identifies defects when?

Dynamic Code Analysis identifies defects during the execution of a program or script because it involves analyzing the code while it is running. This method allows testers to observe the actual behavior of the application in real-time, capturing issues that may not be evident in the static analysis phase. It tests the software in an environment that simulates real-world conditions, which is essential for identifying runtime errors, memory leaks, and other operational problems that occur only when the code is executed.

In contrast, other methods, such as static code analysis, focus on reviewing the source code without executing it, which cannot capture these runtime behaviors. Therefore, the correct answer highlights the unique capability of dynamic code analysis to identify issues during the actual execution of the code, providing insights that enhance the overall quality and reliability of the software.