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That means -1.05 to +0.25 is totally acceptable for camber.
When you get aligned, you say make my camber -0.05 (or whatever you designate) +/- 0.0 If it's not -0.05 then he needs to adjust it again until it reads -0.05.
I used to do alignments. You align the wheel, not the tire!
I can see why a tech may not want to align with cupped tires because the tires may still howl or even pull and he would not want to handle any complaints but the condition of the tires have nothing really do do with an alignment. The right answer would be something like I can align without new tires but it still may not ride or drive like it should until you change the tires.
I had a similar cupping problem with an '01 coupe and the alignment guy told me it was a "toe in" problem which he corrected. The tires (fronts) were factory Goodyear EMTs and lasted 29K. They were badly cupped when I replaced them. The rear tire wear was even but I replaced all the tire just to be safe.
Been there, done that, but it was at Discount Tire outlet that swapped my GY EMTs from my OEM rims to my ZR1 repops. This at 21K miles. Car drive fine as is. . .