This saying has some different meanings.
The first meaning is applied to relationships. If you know someone very well or experience something a lot, you stop respecting them.
The second meaning could be: the better we know people, the more likely we are to find fault with them.
Or finally this saying could mean: the more you know something or someone, the more you start to find faults and dislike things about it or them.
All these examples are about becoming familiar with something/someone.
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