...but this doesn't add new information. As you said, DNA is only duplicated or copied incorrectly, not added, and whenever there's a decrease in genetic info, there's always an inherently bad mutation that ends up being detrimental to the organism. Correct?
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An understandable misconception, no, the loss of genetic information will not always have a delirious outcome. Though more likely to be a net negative then a positive, some mutations can be advantagous. And base pair addition does add to the nucleotide sequence, in effect increasing the amount of genetic material.