If someone ''throws the baby out with the bath water'', they just ''reject an idea completely, even though some parts of it are good''. So, in the context above, you can get the idea that the speaker is saying that they must definitely learn from their mistakes by not discarding any more forthcoming ideas.''

"We don't want to throw the baby out with the bathwater" is an idiom. It means that you don't want to get rid of something that is necessary (foundational), good, or beneficial (helpful) when trying to get rid of something that is bad. For example, if you had an idea for a computer app but found that there was an issue with your coding, you wouldn't want to throw out the whole idea for the app. You would want to keep the idea but rework/redo the coding. The "baby" in this case is the great idea for the app -- the bathwater would be the coding problem. Hence, you wouldn't want to throw the baby out with the bathwater.

I believe that, in this case, when the speaker says ''Absolutely! We do not want to throw the baby out with the bath water'', he means that he agrees with the other speaker upon the fact that they must not dispose of any idea or proposal that might emerge. So, should a problem come along, they will try to consider any sort of possible solution/idea to it!