Red Flag 1.2 - Memorize words

Per ARC's own description of 1 Green (from American Reading at Home):

Because many Power Words defy basic phonics rules, they cannot be sounded out and must simply be memorized by sight.

Once mastered, these words provide “islands of certainty” from which the emergent reader can navigate the unknown.

It is worth noting that Blue (the levels after Green) is when ARC expects students to "begin to decode." At this point, a child is expected to have already memorized 120 words entirely by sight. Though ARC still discourages full decoding:

This level is the first level where students really begin to decode (or “sound out”) words. Be careful NOT to ask her to sound out letter by letter. This is slower and less effective... 

Supporting Your Child's Reading

Additionally, in this 2020 document from ARC on supporting your child's reading, there is explicit guidance (in Yellow and Green levels) for parents that says don't worry about trying to "sound out the word."

And once in Blue and Red levels, the guidance changes to don't worry about asking your child to sound out letter by letter, or to use “rules” for decoding.