Deferred Admission – Senior taking classes pass/fail

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I wouldn't worry about it.  I doubt business schools look into transcripts that deeply its not like they are looking for As on specific courses like medical schools do.  I go to a HYPSM and the kids that get into our deferred program seem more focused on their essays (obviously with decent jobs lined up/good GPA + GMAT).  

Hmm.. I remember when people we're asking this last semester general consensus was that it's ok, but you have to start to wonder when someone does it for 3 semesters in a row. It just seems like you're using it to game the system at that point (especially when you only P/F some and not other classes).

Just my take.

Yeah unless you're low income it's going to look opportunistic at best since you clearly picked and chose which class to take pass/fail. Deferred MBA programs weight grades and academic performance a lot more than regular MBAs since you don't have much work experience to judge. I would highly discourage this approach. 

The potential excuse you've pointed out doesn't help your case. In a typical year those grades would've hurt your GPA and the Pass/Fail policy is supposed to be specific to COVID-19 circumstances. Using that excuse implies you would've gotten very poor scores in those classes, and that you took advantage of a policy that isn't intended for this.