I had an entire batch of throdamas come out with genes that neither of the parents have. Does degeneration have a chance of mutating positive genes into negative ones?

Throdama 1: Has elemental vulnerability while parents have Thick Skin/Normal Skin and Normal Skin/Thick Skin.

Throdama 2: Has clumsy paws while parents have agile paws/agile paws and agile paws/nimble legs.

Throdama 3: (Same as Throdama 2, has clumsy paws while parents have agile/nimble)

Throdama 4: Has a red stat when parents can't produce one.

Yup, degeneration causes bad genes. Hence why it's such a battle to avoid it. Degen is only for relatives in three generations, so yay for great great grandfathers I guess.