What is the explanation of the hadith "The child of adultery is worst of the three"?

Recently I have heard about this narration in a local gathering but the speaker did not give any references nor did he elaborate on this specific Hadith. **Narrated Abu Hurairah: The Prophet (ﷺ) said: The child of adultery is worst of the three.** It was used when the speaker was talking about Zina and the negative effects of it to the society. I am having a hard time understanding this as the literal meaning tends to suggest that the innocent child born is also blame worthy. Can someone please clarify this hadith and explain what exactly am I missing here?.