Baaaaaad!

The "and" is not usually used with two adjectives in English. Also the order of adjectives is important in English. If this is just two equal adjectives applied to a goat, it should be "it/she is a small, bad goat." If you say (the alternate accepted answer) "It is a bad small goat." it would mean "when it comes to small goats, this is a bad one."

Does this have any meaning to it besides the literal?

Wrong adjective order.

Why does this issue keep appearing in every damn course...

'Goat' is slang for young girls.