Generally they will replace them if you have 3 readings which are more than 2mmols astray from comparison finger pricks.
My Libre sensors always read lower than my Caresens BG meter usually by about 1mmol which I am fine with but having tried a couple of other BG meters, I suspect my Caresens reads slightly high. I bought some Freestyle Optium test strips to try in my Libre reader and interestingly they almost always read a tiny fraction lower than the Libre sensor, but I trust my Caresens BG meter as I have used that the longest and it was officially supplied by the hospital. That said the Libre being mostly just 1mmol out is fine with me as that is close enough and I generally just go with my Libre result.
As regards things being a bit astray or not consistent in the first day or so, many of us find that applying the new sensor a day before the old one expires and giving our body 24 hours to react to it can help with getting more reliable results from the start. So we apply the new sensor a day early but don't activate it until the old one expires. Whilst the sensor filament is obviously sterile, our tissue can still react to a foreign body suddenly being "fired" into it.
@helli refers to this as insertion trauma which I think is a really good term to describe it. Some people's bodies react more strongly to this than others but many of us find it is worth forward planning and giving it that extra day to bed in before we activate it, to get more reliable results.
Another thing which will impact the Libre readings is hydration and if you are dehydrated which can easily happen at this time of year and particularly as you get older and generally it will cause Libre to read higher than BG if you are a bit dehydrated. There are times when I have come in the house on an evening and drunk a glass of something cool and my levels have suddenly dropped 2mmols and I am sure that is due to rehydration, so worth keeping that in mind if you are getting higher readings than your finger prick.
As regards compression lows during the night, siting the sensor to minimize the risk of this is important, so more towards the back of the arm than the side (be it inside or outside). The wight of your arm on the sensor is not particularly a problem if you sleep on your back, it is more your body weight when you lie on one side or the other. Try lying down on your side in bed and feel where the sensor is and if your weight is pressing it into the mattress and then work out if you need it further forward or backward to reduce that pressure. I have also developed a way of sleeping on the sensor arm with the hand of the other arm under the sensor arm just above the elbow which lifts the sensor up off the mattress a bit. I have gradually made this sleeping position a habit and it is surprisingly comfortable, kind of like giving yourself a hug with the Libre arm uppermost. I believe
@Inka has independently also developed a similar posture to prevent compression lows and also finds it works. If you have the sensor too much to the inside it will likely be compressed by your ribs so finding a good spot is important.
As regards having loose skin I apply my sensor with my hand on my shoulder which tends to tighten up loose skin. I think this is important for the insertion process as much as how the sensor works afterwards. Taut skin will allow the needle carrying the filament to go through it more cleanly and easily as well as meaning that the adhesive will be attaching to smooth unwrinkled skin which will therefore allow better adhesion. I stand with the hand of the arm that the senor is going to be applied to on my opposite shoulder and looking in the mirror, I reach underneath with the applicator and apply it where I know it needs to be. I also hold it for a count of 100 before I wriggle the applicator free as that gives the adhesive a bit of time to form a bond with my skin and the applicator rarely comes away cleanly so giving it that bit of time and then gently wriggling it until it comes away, helps prevent lifting the sensor and disturbing or kinking the filament which can lead to sensor failure.