God is incapable of seeing the bad in us. He can only see the good that is in us. How do I know that this is a truth?
Sin comes from the devil not from God. Sin is bad, evil, darkness and death.
God is light, holy, goodness and life.
When Jesus called out to God from the Cross "My God, my god, why have you forsaken me?" (Matt: 27:46), God could not look at His Son, Jesus, because he was carrying our sins. God could not look at the evil, because He is Light, Pure, Goodness and Life.
When God looks at us he looks at us in Love, because God is Love by his very nature, therefore His love is pure. This pureness only sees good.
Ephesians 1:9 God has now revealed to us his mysterious plan regarding Christ, a plan to fulfill his own good pleasure
And God's good pleasure was to allow His son Jesus Christ to take upon himself our sins so that we could follow the goodness of Christ and be worthy through God's Grace, and His Grace alone, to be with Him in his eternal Kingdom.