Defects are waste.
User stories with known defects aren’t done and can’t be released, they’re partially complete work or inventory, and they are waste too. If you’re using a defect tracking tool you’re queuing up waste and you’re inspecting for quality after the code’s been written.
Eliminate waste. Avoid queues because they prevent throughput of released software and block the flow of value to the customer.
Build quality into the code from the start by fixing defects as you go. To help improve the quality of code, developers should use test-driven development and testers should perform exploratory testing as developers complete vertical slices of user stories. If a defect is found, stop the line and fix it immediately. Don’t queue it up.