Yes, and we are already accounting for it. The objects as seen by us are actually very deep in infrared, when you correct for the redshift to match the key absorbtion lines of hydrogen, they still remain very red.

Appreciated. May I ask regarding the determination of the magnitude of correction to apply? Is it a case-to-case basis? In other words, is it very sensitive to the distance assumped for the LRDs?

The light curve is not smooth, there is a clear spectrum caused by absorption lines. You find the pattern in the lines that you know to be hydrogen, and measure how much redder it is than it would be without redshift.