The second case uses الْعَبْدُ الْفَاجِرُ for a wicked servant whose conduct involves wrongdoing. الْعِبَادُ refers to people who may suffer from such behavior, while the report also describes effects on other creation. Oppression, dishonesty, disorder, or cruelty to animals is not simply a private matter.
The lesson is to take harm to others seriously, not to use assumptions to pronounce a certain verdict about a particular deceased individual. The practical question is whether one’s presence makes others safer and more comfortable or imposes avoidable suffering.