Feeding a 120VAC transformer primary with a 2VDC offset can lead to core saturation, distorting the transfer function and affecting output waveform coupling. The offset shifts the excitation waveform on the B-H curve, potentially reducing coupling and modulating impedance. DC current resulting from the offset is determined by winding resistance, and if the DC component is not eliminated, it can lead to undesirable current flow. The discussion also explores whether AC components can correct DC offsets, suggesting that decoupling the voltage drive can mitigate issues. Overall, managing DC offsets is crucial for maintaining transformer performance and preventing saturation effects.