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Mostly right, but…
Any non-zero unspent transaction output that is not provably unspendable.
…UTXOs are allowed to have an amount of 0 per consensus rules, the dust limit is also just a mempool policy.
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Are you saying that zero amount UTXOs are retained in the UTXO set?
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Yes, it is consensus-valid to create and spend UTXOs with an amount of 0. Therefore, any full node must retain them to not potentially be forked off the network.
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Any non-zero unspent transaction output that is not provably unspendable.
An output script starting with
OP_RETURNis provably unspendable, so it can be pruned.But an output with a fake public key or fake script hash (such as produced by STAMPS) is unspendable, but that's not always obvious. Thus these outputs must be retained in the UTXO set. These are the most harmful ones.