Absorb Identity

If the creature that was returned was copying something else, the Shapeshifters that become copies of that creature will use the copiable values of that creature. In most cases, they will be copies of whatever that creature was copying. If it was copying a permanent or card with X generic mana in its mana cost, X is 0.

If the target creature is an illegal target as Absorb Identity tries to resolve, it won't resolve and none of its effects will happen. Shapeshifters you control won't become copies of the creature.

If Shapeshifters you control do become copies of the creature, they'll use the copiable values of the creature as it last existed on the battlefield. They don't copy whether that creature was tapped or untapped, whether it had any counters on it, whether it had any Auras and/or Equipment attached to it, or any non-copy effects that changed its power, toughness, types, color, and so on.