Probably too long but this is the meaning. I hope it helps you
If you exceed the normal duration of the program, your enrolment status will be "fuori corso".
(You failed in one or more exams you did not present one or more exams belonging to the year)

No, they are not repeating students: they are those ... well, see below (University of Bologna statutes):
A student who has not obtained a certificate of attendance at courses specified in the study plan for a specific year of study or who has not acquired the minimum number of credits required for enrolment in the subsequent year, becomes a ripetente i.e. a student who repeats the year.
A student who has attended the degree course for the number of years stipulated by the university regulations but who has not acquired all the credits needed to graduate is given fuori corso status.
i.e.,
www.elccel.org/docs/nr_sp3_it_0.doc -
university careers and that a lot of them are fuori corso (out-of-time) students

Incidentally, secondo me, non è per niente brutto, come concetto, anzi è degno di una vera università dove la gente poteva passare pure la vita intera. E brava Italia! What IS brutto, is the fact that all anglo-saxon universities have become simply professional training schools rather than universities, teaching rather than professing, and imparting skills rather than real transcendental knowledge, whereas Italian universities, all the usual "casino" nonwithstanding, remain universities.