Mark Twain told tall tales with purpose. Hyperbole can be good, but it is not for everyone.

Hyperbole can be an effective way of conveying your strong feelings, but IMO it should be obvious to the listener that you don’t mean it to be taken literally.

A lot of news outlets take a story, twist and exaggerate it to serve their purposes. It’s plain lying and it only makes them look bad to those who research further. It affects their reputation.

Not sure what the question is that you are asking!

It often happens when people are emotional about something. If someone is struggling I would be empathetic, it's what I do. I would try to be helpful.

Overdoing it is annoying but it can be effective and appropriate communication. Probably should be avoided in official or important circumstances to avoid confusion.
When someone's speaking I usually try to understand what they are trying to tell me rather than pick apart their wording or grammar.

These are small things in Life. Focus on the big picture. See the positives.

I'll say it again, sugar coating leads to truth decay.