He has not beheld iniquity in Yaakov, nor has He seen toil in Israel; Hashem his God is with him, and the shout of a king is among them.
Midrash Tanchuma Balak 14 — Hashem does not scrutinize their sins to the full; Shechinah remains among them.
English: The Holy One does not behold the iniquity that is in Yaakov — when they transgress His words He does not scrutinize them closely. “Hashem his God is with him” — even when they provoke and rebel before Him, He does not depart from their midst. “And the shout of a king is among them” — language of love and friendship; the Shechinah of their King is among them.
Aggadic reading of divine forbearance and enduring presence.
Israel’s protection is not sinlessness but that Hashem does not pursue every fault to the end — and the Shechinah stays even under provocation.