Applying a short circuit in parallel to a voltage source and a resistor can lead to confusion regarding current flow and voltage levels. The discussion highlights that while a short circuit may suggest an infinite current, real-world factors like wire resistance prevent this from occurring. Participants emphasize the importance of clear circuit diagrams to avoid misunderstandings about series and parallel connections. Misinterpretations of circuit elements, particularly the ground symbol, contribute to the confusion about current paths. Overall, clarity in schematic representation is crucial for accurate circuit analysis.