Hello, I'm learning. Be nice.
I just moved this question here...

In the privacy realm…
It is said that KYC UTXOs and non-KYC UTXOs should not be consolidated. What does that mean? Does it mean that the two UTXOs should not be combined? Or does it mean we should not save it in the same hardware wallet?
I'm still trying to sort this all out. I have Ledger and Sparrow. I'm catching on.

If anyone cares to respond?

Thanks.