Liberalism is a balancing act which requires accurate acknowledgement of problems and measures taken to resolve them.
In order to be liberal and tolerant you have to be open to hearing difficult messages and opinions even if you don't like them.
People don't express grievances if they are happy. If people have grievances they look for people to blame. If the authorities fail to acknowledge the problem and offer explanations and solutions more nefarious groups will step in because a political void has been created.
Intolerance thrives in a climate of unresolved and unacknowledged problems - because it creates a political void.
It is not a coincidence that revolutions only happen at times of high employment, poverty or other crisis (eg famine or in the aftermath of a disaster).
Intolerance is the product of political failures elsewhere.
It is the product of ignoring issues or dismissing them as being invalidate because they are voiced in 'the wrong manner'.
Saying someone is racist and ignoring everything they say is close minded and ignorant in its own right. You may disagree with where someone places blame or their reasoning, but someone making a point in this way often does have a problem or grievance that needs solving in some way. The solution isn't to ban them, but to do the difficult work of finding and addressing the underlying problem and in doing so creating an alternative narrative.
Eg 'send them all back' is a response to an underlying problem of a lack of affordable housing and poor quality of life. These people want a higher quality of life more than they wish to hate people. They are a stressed population who feel vulnerable and threatened and are lashing out because no one else is offering an alternative solution.
Often intolerant promoting politicians recognising this, offer 'magic bullet' solutions. When achieving power they either fold and are a disaster or turn into monsters trying to solve a problem with the wrong solution. Note the term 'the final solution'. It didn't solve the underlying problem of lack of work and employment. Ultimately the act of losing the war and killing off a massive proportion of your male population in a war does though as it means you have less pressure on land and labour is in higher demand leading to higher wages though and that plus massive investments from the US stopped grievances festering for yet another generation in Germany.
Intolerance always comes from the principle of competition for resources and economic stress. There are no exceptions throughout history.
The intolerance paradox whilst very true, over simplifies this and forgets you have to listen for the early signs of grievance and deal with problems rather than trying to silence and allow political voids that can be exploited to appear.
This is the problem with the 256character generations. They understand part of this, but not the fundamental difficult bit underneath of preventing grievance build up through good civic management.