I know how to determine the declination, but I don't know if I need to add it to the result from VFR_HUD or if that heading is already taking declination into account.
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Could you please provide us some clarification/information regarding what your use case is, programs used (PX4 vs Ardupilot), and what code you are referring to?
I'm running a program on the drone that uses PyMavlink to receive the VFR_HUD message, which tells me the heading in degrees, but it's not clear whether that heading value is based on magnetic north or true north.