What happens to a linear regulator or LDO when the minimum input-output dropout voltage specification is violated?
When the input voltage is close enough to the output voltage so that the regulator is in “dropout”, the output voltage will start to track the input: Vo=Vin-Vdropout. Also, the PSRR will go to zero, meaning any noise on the input will be seen at the output. On bipolar LDOs, the ground pin current will be at its maximum during dropout operation.