LrC Sky masking migrates into clearly defined non-sky elements.

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With my pics, Sky masks often blend into the non-sky elements. For example, here's an original pic and the compute Sky mask:

Usually, that blending works to my advantage, avoiding harsh boundaries when I make aggressive edits to the sky and/or non-sky.

Are there situations where after you make the desired adjustments to sky or non-sky, that blending is noticeable and undesirable?

I don't think you are doing something wrong. The AI Masking isn't perfect.