See this article for some psychological studies on the topic.
Self-confidence can easily slide into over-confidence because it tends to ignore our faults while building a huge ego from overestimating our strengths. It cannot admit mistakes and blames others when things go wrong. And it certainly cannot accept helpful feedback, perceived as coming from an inferior source, or worse, being paranoid that others are out to get one. The prime example in today's US is Presidunce Dump.
Self-compassion, by comparison, helps us to see ourselves more objectively. We admit our flaws while treating them with a kind and caring attitude. This leads us to not just accept but to work on said faults to make improvements. We can more easily accept feedback from others, and evaluate it more objectively. It helps to replace that incessant self-critic in our heads that is always on the attack, telling us how inadequate we are. And it also leads to us extending that compassion to others.
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