Skipped records refer to retained old custom functionality. Unlike conflicts, skipped records will not cause issues, and ServiceNow will continue to be functional for users and the back end. Regression testing can make sure there is no business impact. However, over time, skipped records will lead to new functionality not being deployed. Many new capabilities and features from ServiceNow may not be available. A good illustrative example is switching out a car's body and re-painting the body but keeping the old engine. The vehicle will look new and continue to run till the engine gives out.