I don't understand what the following excerpt from the lesson is supposed to mean:
Can you please clarify what this means in prose rather than abreviated notation?
This means that you use es with bueno, which is an adjective and you use está with bien, which is an adverb (like good and well are an adjective and an adverb respectively)
I hope this clarified it.
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Test your Spanish to the CEFR standard