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The menu glitches/party item offset glitches occur as natural glitches in Pokémon Sword and Shield.
In certain circumstances, you can select an item from the bag to use on a Pokémon, and immediately after using it, scroll up or down to an adjacent party slot to produce unusual effects. This article will use the term source Pokémon to refer to the one that was initially selected, and offset Pokémon for the one that was scrolled to.
By selecting a TM or TR and scrolling this way, the move will be taught to the offset Pokémon, assuming it's compatible. If it's not, nothing happens; whether the source Pokémon is also compatible with the TM/TR has no bearing on the outcome. Normally this would be no different than simply selecting the offset Pokémon in the first place for teaching the move, but there is one case where it makes a difference.
If the offset Pokémon is an unhatched egg, it cannot normally be selected for TMs/TRs, but can learn them while still in the egg by using this glitch. If the egg already has four move slots filled, you will be prompted to replace a move as usual, and the screen you see while deciding on this will allow you to see the egg's stats and ability without having to wait for it to hatch.
This glitch can also be used with the various sizes of Exp. Candy or the Rare Candy, as long as your bag contains only one copy of a particular size of candy that you want to use the glitch on. After scrolling, the source Pokémon will be the one that receives the experience points, so the scrolling will often not have any meaningful effect.
However, if the experience gained this way causes the source Pokémon to level up, and it now meets the requirements for its evolution, and if both the source Pokémon and offset Pokémon are the exact same species and form, then the offset Pokémon will be the one that evolves instead.
This can be useful in that it doesn't require the offset Pokémon to also meet the normal threshold for evolution, and can thereby cause it to evolve while underleveled, or even while it's still in an unhatched egg, in which case the evolved species will be what eventually hatches. The event distributions for Eevee and Meowth with the Gigantamax flag, which are normally prevented from evolving, can evolve as the offset Pokémon this way, though they will lose the ability to Gigantamax thereafter. Male Combee or Salandit can also evolve by this glitch as long as the source Pokémon is a female version of the matching species at a high enough level; doing so will cause the offset version to change gender and become female. If both the source and offset Pokémon are Espurr of opposite genders, using this glitch with either of them will cause the offset Pokémon to switch gender as it evolves, if that's what you prefer over forgoing the glitch and evolving it normally.
This glitch cannot be used to cause trade evolutions or stone evolutions to occur, because those evolutions aren't triggered by gaining levels. It also cannot cause, for instance, a non-Galar Linoone to evolve by leveling up a Galar Linoone, because those are considered different forms.
If this glitch is used to cause a Nincada to evolve into Ninjask while it's still in an unhatched egg (and assuming there is a vacant party slot and at least one regular Poké Ball in the bag, of course), another unhatched egg will be added to the party, this one containing a Shedinja.