What is the value of the fraction $\frac{2}{3-\frac{2}{3-\frac{2}{3-\ldots} } } $?
I let $x=\frac{2}{3-\frac{2}{3-\frac{2}{3-\ldots} } } $ and hence $x=\frac{2}{3-x} $ which gives $x=1$ or $x=2$.
If I define a recurrence relation $x_n=\frac{2}{3-x_{n-1}}$ for $n\ge 1$, I will have $\lim_{n \to \infty}x_n=1$ if $x_0\neq 2,3$ and $\lim_{n \to \infty}x_n=2$ if $x_0= 2$.
Any good explanation?
The simplest one: draw the graph of the function one iterates, here this is the function $f:x\mapsto2/(3-x)$, on $[0,3)$. The function $f$ is increasing and its graph is above the diagonal on $[0,1)$ and on $(2,3)$, below the diagonal on $(1,2)$ and it crosses the diagonal at $1$ and at $2$. Hence the sequence $(x_n)_{n\geqslant0}$ starting from $x_0\geqslant0$ is:
What is the relevant starting point to attribute a value to the continued fraction you are interested in is a debatable matter. A common choice is $x_0=0$, in which case the value of the continued fraction in the question is $\lim\limits_{n\to\infty}x_n=1$. This choice corresponds to the sequence starting with the values $$ \color{red}{\bf0},\quad \frac2{3-\color{red}{\bf0}},\quad \frac2{3-\frac2{3-\color{red}{\bf0}}},\quad \frac2{3-\frac2{3-\frac2{3-\color{red}{\bf0}}}}, $$ or, as it happens, any nonnegative starting point except $2$. The limit point $2$ is obtained when one considers the sequence starting with the values $$ \color{blue}{\bf2},\quad \frac2{3-\color{blue}{\bf2}},\quad \frac2{3-\frac2{3-\color{blue}{\bf2}}},\quad \frac2{3-\frac2{3-\frac2{3-\color{blue}{\bf2}}}}. $$ Both these arguments point to the value $1$, not $2$.