B, chlorine sterilization, disinfection, bleaching effect is due to contact with water into hypochlorous acid, rather than chlorine, so B error;
C, because chlorine is insoluble in saturated brine, and hydrogen chloride can be dissolved in saturated brine, so a small amount of hydrogen chloride in chlorine can be removed by saturated brine, so c is correct;
D, because the newly prepared chlorine water contains hydrochloric acid and hypochlorous acid, hydrochloric acid is acidic and hypochlorous acid is bleached, so the blue litmus test solution first turns red and then fades, so d is correct;
So choose B.