What does ‘bash -c’ do?

Quoting from man bash:

-c string If the -c option is present, then commands are read from string.
If there are arguments after the string, they are assigned to the positional parameters, starting with $0.

The command quoted by you would append the text in heredoc (i.e. the text in VirtualHost tag) to the file /etc/apache2/sites-available/magento-store.com.

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