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I was curious if VU Cycle stealing degrades graphics or causes effects in the game to not render or be missing.

Yes it can cause objects/effects to be missing, also can cause the game to be slower if you use too much of it and also can stop games from working after a while.

It can have some interesting effects depending on the game. I've had missing HUDS (Dynasty Warrior Gundam) and broken model skeletons, causing heads turn upside down or sideways (.hack//GU). In most games I've played though it's usually less interesting, just causing the game to slowdown.