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I am looking at the CRB and the errata, and I was wondering if I was correct in my understanding that Magic Fang was not intended to benefit Animal Companions?
There is still the restriction that they can only benefit from item bonuses to AC and speed. Since Magic Fang provides a +1 item bonus, they cannot benefit from the +1.
A mature animal companion (lvl4) gets 2 attack dice so the magic fang does nothing (grants 2 if you have only 1)

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For my edification, what is the purpose of Magic Fang? It cannot be cast on yourself (target is your ally and they made it clear you are not your own ally) and it is nigh useless on an animal companion.
Follow-up question: Why is one of the two spells for the sample wild druid (p134) Magic Fang when it has no value to him? (p134 - he has no companion, no summons, no bonded animal feat)
*Moved to advice forum now that it is clear about the rules

HammerJack |

Magic fang can be cast on creatures that are not Animal Companions (summoned or purchased).
Magic fang benefits any animal companion that does not have 2 dice of damage yet, as only the bonus to hit is an item bonus.
Magic fang benefits any allies who use unarmed attacks, which is fantastic at low level if you have a monk or an animal totem barbarian or someone of any class who uses ancestry based unarmed attacks in the party.

theservantsllcleanitup |
It cannot be cast on yourself (target is your ally and they made it clear you are not your own ally) and it is nigh useless on an animal companion.
Take another look at that errata. It changed the target to "1 willing creature", which would certainly include yourself.
For reference:
willing creature.” Change the first sentence to “Choose one
of the target’s unarmed attacks.” Change the last sentence
to “The unarmed attack becomes a +1 striking unarmed
attack, gaining a +1 item bonus to attack rolls and increasing
the number of damage dice to two if it had only one.” This
makes the spell less restrictive and more versatile.