The reason that the benefit of the doubt is not given is because this type of modernist thinking has been around for over 200 years, since the early 1800s. It was also around before that, when 3 other councils in the history of the Church defined dogmas which condemned such thinking. This attack against the doctrine of exclusive salvation is a never-ending attack. V2 brought it up again, and now 95% of catholics are infected with this error, to some degree.
I would say, based on some of his answers, that he was infected with Modernism. We all are, in some areas of our life. Pope St Pius X said that Modernism is the "synthesis of all heresies." It's prideful to think any of us is immune.
The Church has ruled that, except where She has said that texts of the Bible are symbolic, that Scripture is to be read with a literal interpretation. When the Church gathers all Cardinals, Bishops and theologians together for a council, in order to condemn errors and teach doctrine, She spends months and years to formulate the doctrinal statements so that they are clear, concise, and simple to understand. This is Her purpose - to teach simply so that even a child can understand the Faith. So, yes, doctrines are meant to be read in a literal sense, especially since they come from the Pope, through his power of infallibility, wherein God protects him from error in teaching truth.
It depends what you mean by development. Modernists want to define development as meaning that doctrine "changes over time" to "suit the needs of man in each age". This is totally heretical. The Faith which Christ gave to the Apostles, which they preached to all the nations, which was handed down to the Church Fathers, which has been handed down 2,000 years to us is absolutely, 100% the same - with nothing added, edited or removed. This is why Tradition and doctrine is said to be believed "everywhere, always and by all."
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However, we can say that doctrine "improves" in the sense that by prayer, apparitions and enlightenments of Saints, God gives greater understanding, depth and wisdom concerning the Divine Truths which doctrines seek to explain. This does not mean that doctrine changes; it just means that God gives us more details. Our simple minds can never fully understand Divine Truths, which is why we will continue to learn for all eternity about God, if we make it to heaven.
I think the gray area is small, but I'm not certain we can precisely pin down its limits. I definitely think the modern Bishop Barron types, who want to speculate on possibly everyone being saved, are being manifestly foolish. I think its clear, both from scripture and from the vast majority of Church Tradition, that Judas Iscariot is in Hell and that there are other human beings in Hell. It seems extremely likely, though perhaps not absolutely certain, that the majority of human beings end up in Hell. I do think it might be the case that the best a soul that is unbaptized could possibly attain is Limbo, and I *have zero emotional or otherwise objection* if that's ultimately how God set it up. The reason why I withhold judgment there is mostly because it seems like even most trad theologians do, and its not sufficiently *obvious* to me that they're wrong, to absolutely rule that out.
Of course, Protestants and EOs create a unique problem in the sense that they are in fact baptized, which raises a different question, what level of knowledge a baptized person has to have in order to be a formal as opposed to mere material heretic. I'm not aware of the Church having ever definitively defined this either, though its possible they have and I'm just not aware of it. In the case of Protestants and EOs, the issue seems not to be invincible ignorance or baptism of desire (as the case is with "virtuous pagans") but rather Christians (in the sense of having a valid baptism, even if not in any other sense) and at what point said Christians are in fact actually cut off from the Church due to formal heresy.