Hi @GerryGarza ,
Are the polygons in one feature layer or two? If there are two layers, you can have a look to see if there they share the same coordinate system, if not then the overlapping is called Topology Errors: Topology in ArcGIS—ArcGIS Pro | Documentation. There is a section in this link to explain more: under the heading :Topology validation, errors, and exceptions.
The benefit of using topology and ensuring that this is correct is: that as Topology is a collection of rules that with the option with different feature types allows for more seamless editing and ensure that you have a more enable more accurately model geometric relationships and spatial representation of the features that are represented on the earth. It also allows for growth in the company, where you can have the ability to edit the GIS data by multiple users and potential in a web application. The rules that need to be applied also ensure the accuracy of the data collected as editing con only be completed based on the rules that have been applied.
The Purpose of Topology is: you can use topologies to model spatial relationships between features. These enable support for a variety of analytic operations, such as finding adjacent features, working with coincident boundaries between features, and navigating along with connected features.
The above link should let you know more information about topology layers.
Regarding the Polygon layers, what is the purpose of the features, and the best question to answer your last point is to understand, the importance of how accurate the data is to the company or project. If it is very important that the polygons are accurate to the earth's surface, then it would be advisable to fix the errors.
I hope this information helps