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Skylake Bug

Errata's are fairly common tbh it's not that big of an issue providing they can be fixed and without impacting performance significantly, the worst I can remember is the original Phenom bug where the fix hobbled the chip by about 15%.
 
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Do microcode updates reprogram the cpu like flashing the firmware or something?

Yes! There's a bit of history in this article that I think is quite interesting:

Since the ill-fated FDIV bug, which caused a recall of Intel Pentium 100 MHz processor, the company adopted a cautious approach to its products. Still, a watershed moment for the company happened when Tom’s Hardware discovered that the Pentium III 1.13 GHz freezes during Linux kernel compiling test. Intel was forced to recall the product at the time when AMD was beating it with K7 i.e. Athlon processors. Following the Pentium III fiasco, Intel adopted a so-called ‘microcode update’, or a function which enables ‘flashing the firmware’ of the processor, and removing bugs such as the Skylake one. Every Intel (and AMD) processor that shipped over the past decade or so has the ability to be updated through a BIOS update, and time will tell can Intel fix the problem with Mersenne Prime numbers bug.
 
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