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1 John 1:7

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 7 But if we walk in the light as he is in the light, we have fellowship [in the Spirit] with one another, and the blood of Jesus Christ his Son cleanses us from all sin.3 [Today, (09/10/21), no one on earth walks in the light as He is in the light. To walk in the light is to be guided by God, (who is light), in everything to say and to do. All men sit in darkness and walk in darkness until the light arises in their hearts. However, if you're not walking in the light as He is in the light, his blood does nothing to rid you of your sins. From the Word of the Lord within: "Light comes from faith in the voice. Jesus did not die so you can continue to sin."]

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3 if we walk in the light as he is in the light, we have fellowship [in the Spirit] with one another, and the blood of Jesus Christ his son cleanses us from all sin.

This is a critical verse that is grossly misunderstood by most Christianity, and the Word of the Lord within has stated, "For half of Christianity the blood will be disastrous." How so? Christianity takes half of this verse, (the blood of Jesus Christ his son cleanses us from all sin), out of context to think that any believer is automatically cleansed from all sin by the blood of Jesus Christ; they leave out the first half: If we walk in the light as he is in the Light, which is covered in detail below. Today, (09/10/21), no one on earth walks in the light as he is in the light. Christianity doesn't even know what the light is.

To walk in the light is to no longer walk by the light of the sun or the moon. To walk in the light, is to see by the light of God instead, which shows us what to do and instructs us what to say.

In the beginning of our journey to union with God, the light shines in our darkness gently and anonymously reasoning with us to depart from our evil ways; but men do not comprehend the light and hate being shown their life is evil. So all men walk in darkness without the light of God to guide them. With sufficient waiting on God and obedience to what you see and hear from Him, the light arises in your heart like the morning star rising on the earth; Jesus, the morning star, appears in your heart to guide us through life with what you should do and say. Then we are no longer walking in darkness; we are walking according to the light of God. We are no longer walking according to what we previously saw by natural light, but we are walking by the light of God, which shows us what to do and tells us what to say. All men sit in darkness and walk in darkness until their hearts have been purged from the evil that defiles them.

From the Word of the Lord within:

Faith in the voice is evidenced by your obedience to what you hear the Lord speak to you as you wait on Him and listen in humble silence; to follow is to obey what you hear — that is operational faith that is alive, not dead.

When you are walking in the light with belief and obedience, then you are righteous; and then you are doing the will of the Father on earth as it is in heaven. You can be walking in the light and in fellowship, and then through lack of watchfulness have an unintentional slip; but that can be forgiven and cleansed.

After seeking, after listening, after being faithfully obedient over a period of time, God will cause his light to shine in your heart, giving you knowledge of God in the face of Christ Jesus, whose face you behold, as if in a mirror, as you are restored to the image of God in increasing glory. Those to whom John is writing, have not yet seen eternal life, nor have they been delivered from their sins. John is encouraging them, declaring that himself and the mature Christians have fellowship with the Father and the Son. He is telling them that they can look forward to walking in the light and having a fellowship in the Spirit with other believers too.

John is speaking of a fellowship in the spirit with other believers. George Fox spoke further of the fellowship in the Spirit and light in the below excerpt from Letter 149.

All Friends everywhere,

Meet together, and in the measure of God's spirit wait,
that with it all your minds may be guided up to God, to receive wisdom from God.
That you may all come to know how you may walk up to him in his wisdom.
That it may be justified of you, and you in it preserved up to God, and be glorified.
And Friends meet together, and know one another in that which is eternal,
which was before the world was.
For knowing one another only in the letter and flesh,
differs you little from the beasts of the field;
for what they know they know naturally.
But all knowing one another in the light which was before the world was,
this differs you from the beasts of the field,
and from the world's knowledge,
and brings you to know one another in the elect seed which was before the world was.

In a letter to newly convinced believers, Francis Howgill gives us a little more description of the fellowship in the Spirit:

And wait for discerning, to have salt in yourselves, to know and savor one another in the spirit, and operation, and working of it; that being sensible, and feeling one another’s conditions in the spirit, you may speak to the informing of one another, to the building up on one another, in the precious faith. But be slow to speak, and swift to hear; and do not feed each other’s sensual wisdom, which is the serpent’s seat. For words without knowledge darken counsel, and betray simplicity.

and the blood of Jesus Christ his Son cleanses us from all sin.

Those to whom John is writing, have not yet been delivered from their sins. John is encouraging them to know that if they continue, and the light brightens in their hearts, they will have fellowship with one another, as well as the Father and the Son. John further tells them that by dwelling in that light, it will cleanse (or purify) them from all sin. John in the very next verses explains how Christ's blood purifies us from all sin. He said:

If we say that we have no sin [when he reproves us], we deceive ourselves, and the truth is not in us. (We start as sinners, before being cleansed.)
If we do not deny our sins
[when he reproves us], he is faithful and just and will forgive us our sins and purify us from all unrighteousness.
If we say we have not sinned
[when he reproves us], we make him a liar, and his word is not in us. 1 John 1:8-10

When you examine these verses in lieu of the verses before and after the above three, this is the meaning:
With belief in the promises of the gospel, we go to the Light (Jesus) in humble silence to wait, listen and watch, hoping for purification by his blood and grace.
If we say we have no sin, we deceive ourselves, we have no humility, and we get no help; the truth is not in us.
If when he (the Light, Christ) shows us our sins and we acknowledge them, he will forgive and cleanse us of that sin.
But, if when he (the Light, Christ ) shows us our sins, and if we say we have not sinned that he has shown us,
thinking he is not the Truth, thinking whom we hear to be a liar, we receive no help from him;
 and His word fails to be planted in our heart, so that it can control us in the future.
Thus we have rejected Christ as a liar, and we have shown our hate for Him, John 3:19-20.
But if we accept His conviction as true, He forgives us, cleanses us from sin, and His word stays in our heart to keep us from sin.

This is how we are cleansed from sins until we are clean and purified. We believe what the Light shows us, and that the light is Christ.
We believe Jesus within, the true Light, given to every man who comes into the world so that he might believe. John 1:7,9

It is not enough to believe that Jesus is the Son of God, born of a virgin, and resurrected from the dead.
We must believe what he says to be true and then act on it.
Faith without works of loving obedience to God is dead. James 2:20

Jesus also told us to "believe in the light so that you may become children of the light." John 12:36
It is not enough to believe there is a light, we must believe what the light shows and tells us to be true, and then act on it.

It is by grace through faith that we are saved, (delivered from all sins).
By waiting on God, we receive the teachings of grace, the convictions of grace, and the removal of sin by grace, ending in our salvation by grace.

John in the next verses, continues:

My little children, these things I write to you, so that you may not sin.
But if any man does sin, we have an advocate with the Father, Jesus Christ the righteous.
He is the atoning sacrifice for our sins, and not only for ours, but also for the sins of the whole world.
And by this we know that we know Him: if we keep [obey] his commands.
He who says, “I know Him,” and does not keep his commands, is a liar, and the truth is not in him.
But whoever obeys his spoken words, [obeys the Lord's commands spoken to him], truly the love of God is perfected in him;
by this we know that we are in him
. He who says he abides in him ought to walk in the same way that he walked. John 2:1-6

Starting as spiritual little children, if we obey the Word that we hear him say to us or what he shows us in the Light,
(Jesus being the Light and the Word), and if we abide in Him, we are of the truth and we know we are in Him.
and God's love is perfected in us, resulting in us walking as Jesus walked, in love and truth.
We progress from little children, to become young men that have overcome the wicked one, to then become Fathers in the truth;
we grow up to a perfect man, to the measure of the stature of the fullness of Christ. Eph 4:13

John continues:

And every man who has this hope in him purifies himself, even as he [Jesus] is pure.1 John 3:3
Whoever commits sin practices lawlessness; for sin is lawlessness. 1 John 3:4
And you know that he appears [in us] to take away our sins, and in him there is no sin. 1 John3:5
Whoever abides in him does not sin; whoever sins has neither seen him or known him. 1 John 3:6
For this purpose the Son of God is revealed, [in us] that he might destroy [in us] the works [sin] of the devil. 1 John 3:8
The purpose of the Son is to destroy the devil and his works [sin] in us — if we go to him.
Whoever is born of God does not commit sin, for his seed [Christ] remains in him;
 and he cannot sin, because he has been born of God. 1 John 3:9

John repeats later for emphasis: We know that whoever is born of God does not sin; instead God protects the one he has fathered, and the wicked one does not touch him. 1 John 5:18
And His seed [Christ] are the words he has planted in your heart, words that you have heard, the Word of God. Luke 8:15

The words are grafted into your heart, forming Christ within you, until He is fully formed and resurrected in you.

Those words we hear Him speak to us are engrafted into our heart, James 1:21;
and those words we hear Him speak to us are Spirit and impart the life of God to us, John 6:63;
which life of God is Christ, John 1:5, 14:6, so that Christ is formed within you, Gal 4:19

Until finally Christ is fully formed and actually resurrected in you. Col 2:12,3:1,Eph 2:6
You then see Christ, the glory of God, appear in your heart and witness Him bringing your salvation and eternal life.

From the Word of the Lord within: "We go to Him, and He rains help upon us; well does this exercise of God purify those who do."

The false prophets take 1 John 1:8 out of context: If we say we have no sin, we deceive ourselves and the truth is not in us, and say that proves no one can ever be without sin; ignoring the next statements and ignoring the context of the process of purification being referenced. To be purified you have to have sin to start, or purification is not even necessary. John is referencing sin that is to be destroyed, not carried to the grave.

This is how to mortify [put to death] the deeds of the body that are of the earthly life: fornication, impurity, inordinate affections, evil lusts of the flesh, and covetousness, which is idolatry. Col 3:5.

Many scriptures prove the Lord's gospel is to destroy sin, and many others show that sin was destroyed. See How to Wait on God and Benefit from His Purifying Power for more on the destruction of sin within you.