This is standard ServiceNow platform behavior for upgrades. When a customer modifies an out-of-the-box (OOTB) record, such as a script transform, the system flags it as a customization. During a platform or application upgrade, if a new version of that record is included in the update, the system will not overwrite the customer's changes. Instead, it creates a "Skipped" record in the Upgrade History. The administrator must then review the skipped change and decide whether to revert to the new OOTB version, merge changes, or retain the customization.

A. Upgrades are designed to be resilient and do not stop due to customizations; they log them as skipped changes for later review.

C. The upgrade process will start and complete, but it will bypass the application of the update for the customized script transform.

1. ServiceNow Product Documentation. Upgrades. Section: "Review and resolve skipped records". It states, "During an upgrade, the system skips any record that has been customized... The system saves the upgrade version of the record so that you can compare the versions and revert your customization if you want."

2. ServiceNow Developer Documentation. Upgrades and Clones. Section: "How the upgrade process works". This guide explains that the system tracks customer updates (sysupdatexml) and if a record has been updated by the customer, the upgrade for that specific record is skipped.