What is the meaning of "religious and of good character," and does religion contradict character, and what is the difference between "khuluq" (disposition/character) and "akhlaq" (morals/ethics)?

There is no contradiction between religion and ethics, for ethics are an integral part of religion, and with a deficiency in ethics, religion becomes deficient. The Prophet, peace and blessings be upon him, linked faith, trustworthiness, and fulfilling covenants when he said: "He has no faith who has no trustworthiness, and he has no religion who does not keep his covenant." The Prophet, peace and blessings be upon him, mentioned "character" after "religion" in his saying, "one whose religion and character you approve," to emphasize the importance of ethics. Indeed, religion encompasses all ethics: with Allah, with oneself, with people, and with all creatures. If ethics are understood with this comprehensiveness, then religion is ethics, and ethics are religion.