The input polygon features for which a suitable regularized result could not be created will be copied to the output features. The STATUS field for the copied features will show a value of 1. The most common reason for a skipped feature in the Regularize Adjacent Building Footprint tool is the number of vertices produced after the densification of the boundary of the features in the group being processed exceeds 200.
If possible, eliminate unnecessary edges in the input features. For example, if a polygon boundary contains interior holes that are not true holes in the building footprint, eliminate those interior holes to minimize the total number of edges that will be identified by this tool.