I'm having some silly confusion about the definition so I would really appreciate it if someone can help me out with this definition.
Let $i: X \hookrightarrow Y$ be a closed immersion cut out by $\mathscr{I} \subseteq \mathcal{O}_Y$. Then, Vakil defines the conormal sheaf of this closed immersion to be $\mathscr{I}/\mathscr{I}^2$ as viewed as a quasi-coherent sheaf on X. The italicized part is essentially my confusion.
How are we viewing this as a quasi-coherent sheaf on $X$? The most obvious way to do this is to take $i^*(\mathscr{I}/\mathscr{I}^2)$ but I don't think this is right. In particular, this question seems to take it to be $i^* \mathscr{I} = i^{-1}(\mathscr{I}/\mathscr{I}^2)$. I find this unsettling though.
By definition, $\Delta: X \to X\times_YX$ is a locally closed immersion and we define $\Omega_{X/Y}$ to be the conormal sheaf of this embedding. This would be fine, although Hartshorne defines $\Omega_{X/Y} = \Delta^*(\mathscr{I}/\mathscr{I}^2)$ instead of what I would have expected from above, $\Delta^*(\mathscr{I})$. What is going on here?
To summarize, is the conormal sheaf of $i: X \hookrightarrow Y$ defined to be $i^*(\mathscr{I})$, $i^*(\mathscr{I}/\mathscr{I}^2)$, or both?
Thank you very much for any help.