No, that is a myth. Copies are digital, not analog. Part of the writing routine is to correct for any changes that occur with the target drive so that copies of copies can be made.
I was involved with duplication long before Mountain Computers (and it's duplication system patents) was sold to Trace, Inc. "Customers" did not supply scripts. These were created by the duplication houses as part of their service. I had hundreds of thousands of disks produced on these machines. I also sold protection schemes to some companies that had to be duplicated on these machines, so I worked with a couple of duplication houses to be able to create the proper scripts to do that.