[jQuery] How does one add children to a DOM element using jQuery?

[jQuery] How does one add children to a DOM element using jQuery?

I'm slightly confused.
How does one add children to a DOM element using jQuery?
There are append*, prepend*, insert* methods, but none of them seem to
actually add a child *inside* a jQuery/DOM element.
Why do I need this?
I need to create a list inside a div from some data that comes, say,
from an AJAX response. How do I do that?
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