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I suppose it depends on the situation.
I have met people who are bizarrely self-confident, but I didn't think they were self-delusional. They weren't saying they were a better fighter than Fedor, smarter than Newton, could eat 100 eggs like Cool Hand Luke, et cetera.
yes, of course. i'm talking about people who are downright bad at something, don't have friends, can't get along with anyone, have no success, etc. oftentimes in order to cope with those realities, said person(s) make up some fantasy about why their inequities are someone else's fault.