Just because a demon shelters some villagers doesn't mean it's a good demon; it might just be keeping them as a reserve food source.
Karma is the most straightforward indicator to judge whether a living being is evil.
Anyone entangled in karma is not good; almost all are extremely wicked, with very few exceptions. The most representative figure among them is the Spirit Sect Master who became a Supreme.
The Blood Sea is the filthiest place in the world, but within it lies a top-grade Innate Spiritual Treasure, the Karma Fire Red Lotus.
This treasure automatically absorbs worldly karma, using it as nourishment to enhance its power. Naturally, the Spirit Sect Master, who obtained this treasure, is covered in karma.
However, the Karma Fire Red Lotus can suppress fortune, so the Spirit Sect Master is not burdened by karma. This explains why he dared to plot against Red Cloud, attempting to steal the Hongmeng Purple Qi, the Foundation of Sanctum, from Red Cloud.