I found a solution that works for me!
As stated previously, I followed the instructions in the link below and all works as expected. The "Skipped" step results do not appear on the text report. This link describes how to Programmatically Disable Result Recording for Skipped Steps in Teststand.
https://knowledge.ni.com/KnowledgeArticleDetails?id=kA00Z000000fyuGSAQ&l=en-US
However, the "Number of Results" is still incrementing. The fix I found for this is a "quick and dirty" approach. Instead of adding a Precondition to the test step itself (in my case a "Numeric Limit Test") to dictate whether or not to skip the step, I bookended the test step within an "If" statement so when I want the test skipped, I avoid it from being executed entirely to avoid incrementing the "Number of Results".
