I hid my reply as well, IDK if that's a good idea or not but I'll match your style.
Yeah, context is kind of like situation. Context refers to the specifics (whatever they might be) of a given situation.
Right, “it” refers to the word “bad” because that is what you asked about. You specifically asked what “bad” means.
But, “bad” in the context of the phrase “my bad” has a specific meaning that is a bit different than it is in other contexts. So I was still talking about “my bad” — but I was specifically talking about what the word “bad” means in that phrase.
Yes, “my bad” is basically an informal way of saying “my mistake.”
“Basically” means you are simplifying a concept a bit. Or generalizing it. You’re reducing an idea down to its “basic” version.
In the context of my usage above, “basically” is also kind of like a hedging word. It is not necessarily saying there are things left out. But there might be, because I’m keeping things simple. Some nuanced complexity might be lost.
It is saying something like “this may not be entirely precisely technically 100% correct in all possible contexts, but for most purposes in this conversation it is close enough that we can treat it as correct.”