Being able to manage “screwups” by recognizing their potential and relegating them to an area where they can do no harm and still produce benefits is an invaluable skill. It’s actually one that I use on myself.
Because I know in certain contexts, I can function with confidence, and in others, I had best step aside and let someone else lead. There is no judgment, no labeling someone a “badass” or “loser,” there is only the recognition of the problem to be solved, and the emplacement of measures to solve it. (and personally, I also like to focus on what I need to improve, and take active measures to address the discrepancy for future purposes).
Ironically, when I take self-worth out of the picture, I feel perfectly at ease with who I am.