Did Sai Baba ever give advice on what kind of people his devotees should avoid associating with?

Yes, Sai Baba provided very direct and strong advice on this matter to Annasaheb Dabholkar. According to Chapter 3, Baba instructed him to abandon those who have forsaken religious conduct, describing them as "very dangerous." His guidance was emphatic: one should move aside when such people approach and "not even stay in their shadow, even if one has to endure suffering." He characterized these individuals as being without conduct, having a fallen character, and being thoughtless in their actions, which prevents them from achieving their goals. This instruction underscores the importance of maintaining virtuous company on the spiritual path.