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I'm a citizen of 2 countries.
I live in X. I don't live in Y
I want US consulate in X to print my b1/b2 visa on my Y passport
I don't use my X passport because it's a shitty passport for travel
Is this possible?
Bonus question. Do I need to carry both of my passports with me while traveling internationally? I assume no.
One way or another, you are going to have to submit both passports with your application.
In addition to asking about all nationalities on the visa application form (DS-160), the US visa application process requires you to prove that you are legally present in the country that you are applying for the visa in (country X), and in your case that's going to require submitting your passport for country X with the application.
In general, there is nothing stopping you from applying for the visa under your citizenship for country Y, however there may be a few exceptions depending on the specific country and visa. As you haven't included specific countries or visa types it's not possible to accurately answer that.
It's also worth keeping in mind that the fees for a US visa, as well as the default length of the visa issued, vary depending on the country of citizenship - it would be worth checking both passports to confirm which one would result in the cheapest/longest expiry visa.
In general yes: you can apply to any US consular office for a US visa (do not do that, "visa shopping" is not well considered, and it doesn't give you more chances. Your local embassy will probably will contacted to verify your documents: only people with local knowledge can assert documents and intentions).
In any case, the embassy in country X is responsible for people residing in country X, independent of the passport, so you can apply with your Y passport. It is pretty normal.
In any case, does it matter? When you get a US visa, your nationality doesn't matter too much (unless you are from certain countries), and the passport you have the US visa in doesn't matter too much for other visas.
Some (but not all) US consulates restrict application to persons that are residing in the country of application.
Whichever consulate you apply to, you will for sure need to prove that you are legally in the country at time of application either with a residence permit, a long-stay visa, an official citizenship proof (your passport), or other documents.
I don't know of countries that grant visas/residence permit to their own citizens, so if you apply under passport Y, you will likely have no proof of legal standing in the country.
I can't find the form, but I doubt it doesn't have a question where you must declare all nationalities and ID documents received and you will likely to submit passport X in complement of passport Y, and that might play badly with the officer thinking why they would do that.
I suggest you to play it safe and either apply in X with passport X, or, if possible, at Y with passport Y
