What is the significance of the verse from the Srimad Bhagavatam regarding the foolish and the wise?

According to Osho, the Bhagavatam’s verse—‘the extremely foolish are happy’—means unconscious people feel a false happiness because they lack awareness of their own suffering. Animals and most humans live thus, bound by attachments. True wisdom begins by recognizing one’s own foolishness; awareness reveals life’s inherent dissatisfaction and the futility of outer gains, opening the path to inner light and liberation.

Fools feel fine because they’re asleep; waking up shows the hurt, and honest seeing begins real freedom.