What does it do when I run this command:
npm install --save-dev package1 package2
It is definitely not installing multiple packages, but it
It is definitely not installing multiple packages
Why? You're installing package1 and package2 and marking them as devDependencies with --save-dev.
As stated in the documentation, you may combine multiple arguments, and even multiple types of arguments. In your case, you're combining 2 package names published on the registry.