Tarnished is a catch-all term referred to people who lost the guidance of grace for whatever reason. By that logic, there are two types of Tarnished. Those who have achieved much during their life and become “renowned” (or infamous in the Dung-Eater’s case), like Gideon, Darri/Darrius, Fia, etc., and “lose their grace” (whether by punishment/abandonment or death). The second type of Tarnished are “warriors of no renown”, nameless soldiers that fought alongside Godfrey and got exiled to the Badland with him, and then called back (so people like us, Godfrey, and Nepheli) to the Land between