Record Count is calculated for Internal entities (ingested entities) at the time of dataload when Total, Good, Bad and Ugly Metrics are calculated.
The metrics populate in Discover Entity grids if they have been selected as visible columns in Profile then User Preferences.
The Record Count options are: Total Record Count, Good Record Count, Bad Record Count, and Ugly Record Count.
Note that the counts displaying on Internal Entities are the actual counts that users will see when they query
For more information on how Record Counts for external entities are derived, see Displaying record counts for external entities