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I'm not 100% sure, but it looks very much like an old-style Arc/Info Coverage. I clearly remember those having TIC, AAT and BND files. This format is somewhat similar to a file geodatabase, in that they both consist of a folder containing a number of files that make up one or more featureclasses. Their actual (binary) format is entirely different though. ...
Aggregate polygons tool is probably what you want? It can join polygons within the same layer based upon a defined distance tolerance. You can also set minimum size of polygons and holes to retain.
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