Kevin, in my mind, there is no doubt from time to time the electronic timing does fail or records incorrect sections. You often hear the racecallers say "that can't be right" or "no sectional for that quarter". A slight malfunction can have a huge effect on the overall time.
The one that sticks in my mind was at Menangle in March this year. The magical sub 1.50 has only been broken by a hand full of horses since it opened.
Then in the Ladyship mile this year, the winner Adore Me smashes the record by over a second and even the mare that finished 8th is recorded as running 1.49.8
To have 8 in one race when only a small number of top liners could do it makes you wonder.