They don’t say it literally like that, but they say stuff that boils down to that. People who live wicked lifestyles are tolerated or even celebrated because obviously Jesus loves everybody (He really doesn’t).
Nothing in there about "only if they meet certain moral standards".
I do agree that celebrating people because they do things that contradict Christ teachings (most commonly for accumulating wealth) is wrong.
> "Love your neighbour as yourself"
That is a very important part of that understanding of the meaning of love. While it also means that you love your neighbour in any circumstance, it importantly says that you should love the neighbour in the same way you love yourself. You love yourself even when you know you are evil and should die.
The stance of the (catholic) church is that you should damn the sin and love the sinner.