I would like to know what this below PAM rule
auth [success=1 default=bad] pam_unix.so
above the pam_faillock.so rule is doing
auth required pam_faillock.so preauth audit silent deny=5 unlock_time=0
The complete set of pam_faillock.so rules in /etc/pam.d/system-auth-ac are like this:
auth required pam_faillock.so preauth audit silent deny=5 unlock_time=0
auth [success=1 default=bad] pam_unix.so
auth [default=die] pam_faillock.so authfail audit deny=5 unlock_time=0
auth sufficient pam_faillock.so authsucc audit deny=5 unlock_time=0