The idea that we have sin all the time, no matter how small, is number one for Luther because it demolishes all self-righteousness altogether.
If we can’t comply fully with the requirements of God’s holy law, not even for a day, then the only option is to deny that our works have anything to do with our justification, and therefore justification is removed from sanctification. (Of course our subsequent works prove to men and even ourselves that we are justified but that’s not the subject being treated here).
This is the main idea in Luther’s theology and the reason why he puts it first. He wants to say the Law is big and punishing and there is no escape through personal righteousness even true inward Christian righteousness. He wants to lead people to an external alien righteousness, outside of us, outside of sanctification, which is Christ’s own.
By declaring that we are more sinful as believers than the papal traditions will allow forces us to look for this kind of righteousness.
This might seem a small matter but it is actually polar opposite to the Catholic position. Under the papal tradition justification is the beginning of sanctification making them joined together as both involving our works by grace. Justification is essentially the first moment of sanctification under the papal traditions. That is it can’t be thought of an alien and passive and forensic but active, internal and living like sanctification. This Luther opposed even being willing to die for and which one could say is the foundation of the Protestant faith.
To get a good crowbar and rip this connection apart Luther makes it very clear in his mind through the careful words he uses. If justification is God’s work in us then it can no longer be grace but is works for he can’t work in us without or cooperation of obedience. Justification to Luther is therefore described as ‘alien’ to us, or ‘passive’ and that Christian works can never justify because they are active. Of course Luther preached active obedience but not as a requirement for our justification. (As evidence of it yes, as a requirement for it, no).
Here are some samples of Luther’s careful use of words to ensure nobody confuses alien justification with inner sanctification.
See his use of the word passive: (Interestingly the use of the word passive faith by Luther is typically scorned at by modern protestants not realizing its history and context. After all does it not sound more righteous to say ‘I don’t like people talking about a passive faith! I believe in an active faith!’ Yes that does sound more holy but Luther is not talking about us, and are works, he is talking about Christ covering our huge sins by his righteousness. So maybe reverence is in order rather the self boasting and public declarations of our ignorance.)
But this most excellent righteousness, the righteousness of faith,
which God imputes to us through Christ without works, is neither
political nor ceremonial nor legal nor work-righteousness but is quite
the opposite; it is a merely passive righteousness, while all the
others, listed above, are active.
Luther, M. (1999). Luther’s works, vol. 26: Lectures on Galatians,
1535, Chapters 1-4 (J. J. Pelikan, H. C. Oswald, & H. T. Lehmann,
Eds.; Vol. 26, pp. 4–5). Concordia Publishing House.
See how he uses the word alien:
When a monk clearly realizes in his heart that an alien righteousness,
the righteousness accorded us by grace for Christ’s sake, must save
him, he will ask: “What am I to do now with my cowl, my monastic
order, my rule?” Cowl and rule will be cast aside.
Luther, M. (1999). Luther’s works, vol. 22: Sermons on the Gospel of
St. John: Chapters 1-4 (J. J. Pelikan, H. C. Oswald, & H. T. Lehmann,
Eds.; Vol. 22, pp. 157–158). Concordia Publishing House.
Now it is certain that Christ or the righteousness of Christ, since it
is outside of us and foreign to us, cannot be laid hold of by our
works;
Luther, M. (1999). Luther’s works, vol. 34: Career of the Reformer IV
(J. J. Pelikan, H. C. Oswald, & H. T. Lehmann, Eds.; Vol. 34, p. 153).
Fortress Press.
See his conclusion:
Then do we do nothing and work nothing in order to obtain this
righteousness? I reply: Nothing at all. For this righteousness means
to do nothing, to hear nothing, and to know nothing about the Law or
about works
Luther, M. (1999). Luther’s works, vol. 26: Lectures on Galatians,
1535, Chapters 1-4 (J. J. Pelikan, H. C. Oswald, & H. T. Lehmann,
Eds.; Vol. 26, p. 8). Concordia Publishing House.
Now why does declaring our constant need of forgiveness force one to this conclusion? Because if there was not a new kind of righteousness given to us, we would have no hope as our sins would always condemn us.
That’s why Luther puts this has his number one difference with the papal traditions. Under the papacy sins are manageable. Our inner weaknesses are not sins and when we do sin occasionally we can confess and be restored to a personal state of righteousness. But with Luther sin is not manageable but condemns always, unless we are willing to flee to Christ and his works on our behalf alone.