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I think the most you can get out of this is that your friend is still being considered. But being considered and having the job are two very different things.
It's certainly not bad news. But he/she is also not in a better situation than they were before they got the update...
A prospective employer's personnel member involved in the hiring process following up with the applicant could go either way. The worst would be informing the applicant he or she is no longer under consideration for the position at the present. The best would be informing the applicant he or she is being offered the position. If he or she accepts, he or she is requested to come back to begin the on-board process.