Star Wars: Episode I – The Phantom Menace is a crucial part of the overarching Star Wars saga for two very specific reasons. The Phantom Menace was the first return to the big screen for Star Wars after a nearly two-decade hiatus, and many were surprised by the direction the first movie of the Star Wars prequel trilogy took. The entire Star Wars prequel trilogy was criticized severely when it was first released, and while this sentiment has changed somewhat in subsequent years, The Phantom Menace is still sometimes dismissed or ignored entirely in certain Star Wars viewing orders. Skipping The Phantom Menace, however, means an important part of Anakin’s character arc is lost.
https://screenrant.com/phantom-menace-story-star-wars-saga-importance/