I think it's important not to lie, but I don't think the above is automatically a lie. Instead, it's a call to evaluate people on multiple dimensions rather than one.
When you're giving feedback to someone, it is often a knee jerk thing to ONLY evaluate the outcome of their work. The other thing you should evaluate, though, is your estimation of their effort, e.g. how hard they worked at it, and your estimation of their process, e.g. how well they used their time.
If you only evaluate the outcome of their work, and the work is not adequate, you have given them a purely negative evaluation. If you acknowledge respect for their toil and their process, then you have given them 2 positive evaluations and 1 negative evaluation. You're also acknowledging that because you respect their toil and process, they are doing the right thing in spite of needing the course correction you are providing.
Of course, maybe you have a negative opinion on all 3 aspects of the evaluation. If you think they didn't apply themselves, e.g. their effort was not good enough, AND you think they were't efficient in their process, AND you think the outcome was bad, then certainly it would be a lie to praise any of those aspects, though at that point there's almost certainly something more fundamental that's going on and the person is not a good fit for the job.
Finally, it's important to evaluate your own sense of certainty about the feedback.
I think the important thing about the above advice is that if you are giving feedback and you only focus on the course correction part, it's safe to assume that most people will take that as negative feedback on all the aspects of their work. Now, there are situations and teams where there is so much trust built up around everyone's mutual respect that you can skip to the outcome feedback. There are also feedback-recipients who are confident enough in themselves that they feel that they don't need anything but correctional feedback. In other words, "This was shit!" can totally fly when there's a lot of mutual trust and confidence. But too often I've seen people misread the room in that aspect: THEY, the feedback-givers, have plenty of psychological safety, and they think that is extended to other people who absolutely don't feel that way.