Is it permissible for a Muslim to live with his wicked parents if they do not openly commit sins in front of him and his presence has an effect on reducing their sins? And what is the meaning of the Prophet's saying: "Do not live with the polytheists, nor associate with them, for whoever lives with them or associates with them is like them"?

A man living with his parents is a good thing, even if they are disobedient [to God], due to the joy it brings them. If the son sees an evil from them, he is obliged to denounce it according to Islamic guidelines. The hadith (definition) about not living with polytheists does not apply to this situation; rather, it is a text about living with polytheists among whom one cannot openly practice his religion, meaning that emigration is obligatory for whoever is unable to perform the rituals of his religion.