Good faith/intentions here mean that people point out to a user that what they have said may have been a perfectly accurate description, but that the word used holds a negative connotation as well. Instead of outright kick-muting the person for it, they get a gentle correction.
It doesn't mean they get away with e.g. using rude language. It does mean it can be handled differently, if the people on the other side shows they're willing to accept this gentler form of moderation, and shows improvement after that.