Varying redshifts of the sources in the used catalog will cause issues to some degree:
A higher redshift means that the flux at a certain wavelength is actually at another wavelength.
If the spectrum around this wavelength is not rather flat, this may cause a significantly different flux to be measured (compared to if we would possess all possible information about the source).
A distribution of redshifts among sources will somewhat smear out any visible features in the phase space. For example, several sources that are very similar to each other and would be visible as a narrow cluster in the phase space, would then appear as a less-dense smeared out cluster.
Varying redshifts of the sources in the used catalog will cause issues to some degree: