Let me see if I've cottoned on by coming up with an example.

Say you work with someone for years, and often on Mondays they come in late & with a headache. Other days, their hands are shaking, or they say socially inappropriate things in meetings.

"Good inductive bias" appears to mean you update in the correct direction (alcoholism/drug addiction) on each of these separate occasions, whereas "bad inductive bias" means you shrug each occurrence off and then get presented with each new occurrence, as it were, de novo. So this could be glossed as basically "update incrementally." Have I got the gist?

I think what's mildly confusing is the normatively positive use of the word "bias," which typically suggests deviation from ideal reasoning. But I suppose it is a bias in the sense that one could go too far and update on every little piece of random noise...