This freaked me out as well. Wouldn't I know in the moment? Do we actually experience something if we don't encode memories for it?
It's not "don't encode memories"; it's "lose conscious memory". Your body still scars from cuts when you are unconscious. Your brain likely does too.
How does your brain "scar" from this? I wouldn't say that the experiences are at all traumatic.
This freaked me out as well. Wouldn't I know in the moment? Do we actually experience something if we don't encode memories for it?