Hey there! "Hurt" is literal, but it's literally what happens to the characters in the story.
Let's say you have a witch facing down a Dementor and she casts a Patronus charm. She rolls to stand in the face of danger, gets a 7-9, and picks "you hurt the threat, but it hurts you as well". The important thing is to narrate the Dementor closing in, then reeling back from the light of her Patronus ("you hurt the threat") as she collapses to the floor ("it hurts you as well"). Then, as the Narrator, you might describe her shaking in terror & give the Scared Condition, or passing out from the attack & give the Unconscious Condition.
So yes, generally, getting "hurt" means that the Narrator will make the Narrator Move "Give them a Condition". But it's important that the Condition only occurs because the character got hurt in the story.
Hope that helps!