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If the nodes are never freed, that would indeed leak memory. If you reached that conclusion by searching for 'delete newNode' in the file, that would not mean anything. Nodes would have to be deleted when a node is removed or inside LinkedLists destructor. In neither of these situations you would normally call the local variable newNode though.
I'm guessing that that somewhere there is a LinkedList::pop() method that would have to delete the node and exchange next and prev pointers, and LinkedList::clear() would delete all of the nodes.
So when a value is removed from the list, thats when its node should be deleted. (and the only time)