To use predictive models in engineering design of physical systems, one should first quantify the model uncertainty via model updating techniques employing both simulation and experimental data. While calibration is often used to tune unknown calibration parameters of a computer model, the addition of a discrepancy function has been used to capture model discrepancy due to underlying missing physics, numerical approximations, and other inaccuracies of the computer model that would exist even if all calibration parameters are known. One of the main challenges in model updating is the difficulty in distinguishing between the effects of calibration parameters versus model discrepancy. We illustrate this identifiability problem with several examples, explain the mechanisms behind it, and attempt to shed light on when a system may or may not be identifiable. In some instances, identifiability is achievable under mild assumptions, whereas in other instances, it is virtually impossible. In a companion paper, we demonstrate that using multiple responses, each of which depends on a common set of calibration parameters, can substantially enhance identifiability.