Tirmidhi

Hadith Commentary: Benefits and Issues: The meaning of this hadith is that,
no matter how much a person strives to do good deeds and abstains from sin,
even then he cannot fulfill the true right of doing good and avoiding evil.
Therefore, he should always be diligent in repentance (tawbah) and seeking forgiveness (istighfar).
However, some people, due to their incorrect thinking, misunderstanding, or misinterpretation,
might take the meaning of this hadith to be that committing a sin and then seeking forgiveness
is better than not committing the sin at all.
As a result, they may become emboldened in sin and rely upon Allah’s forgiveness,
whereas seeking forgiveness,
or being granted the opportunity and respite to do so, is not guaranteed.
The actual purpose is that if a sin does occur, one should not become despondent and refrain from repentance and seeking forgiveness;
rather, repentance and seeking forgiveness should be adopted in every circumstance.
In other words, the objective is to encourage and urge repentance, not to encourage or incite the commission of sin.

Explanation:
1:
In the narration of Sahih Muslim, it is stated: (فَیَسْتَغْفِرُوْنَ فَیَغْفِرُلَہُمْ) — that is, they commit sins, then repent and seek forgiveness, so Allah forgives them.
This is to indicate the virtue of seeking forgiveness (istighfar) and repentance (tawbah).