Didn't pass a class, how do they look at it on transfer apps?

I chose P/NP for Linear Algebra and didn’t pass (1% from a C :-/ ) I plan to retake it this following semester, for P/NP again. Wanted to know how this affects transfer admissions from a CC to UCs and CSUs. The P/NP system doesn’t affect my GPA at all so I assumed it’ll be on my record and they’ll consider it when they look over apps with similar GPAs. But I also read a vague post that they factor it into your overall GPA and consider that GPA instead. Just wanted to confirm whether they do that or not. Thanks!