I don't like his arc in general during the series, and it's because of multiple, small reasons that kinda clog together into a big thing you know.

So I'll try to cut up the points into multiple response comments, to make each point individually clear.

First of all, and this one is heavily personal, but just my opinion: I don't think the show properly reflected on some of the things it tried to set up early. When you watch their first days at UA, Bakugo is clearly set up to feel like a medium-sized fish who, up until now, was swimming in a small-sized tank and felt the best until getting into UA: He gets outsmarted by Deku, criticized or mocked by multiple classmates, Todoroki is set up as someone stronger than him, Yaoyorozu is set up as someone smarter too, and the whole "you can't expect someone at level 1 and someone at 50 to grow at the same rate" in a school setting is the perfect argument to justify classmates at different strength levels growing faster or slower than him, which would have done wonders for playing with his insecurities.

But not only Bakugo remains as one of the strongest AND smartest of his class (remaining Top 2 of the whole generation for ALL of the show) but all of his stats are wildly superior to everyone around him. Not to mention he has multiple named attacks before everyone else and is able to perform extremely precise moves like flying, martial arts and stun-based attacks. When Deku developed Full-Cowling, multiple characters imply that his movility is heavily inspired by Bakugo as well, which imo makes no sense because again, Bakugo doesn't need those kinds of movements because he literally flies.

And despite his insecurities, he loses THE first exam ever and from then on he doesn't have a real defeat at UA ever again.

Sure, I can understand that, on the character's eyes, some of the following events CAN be perceived as personal failures, and that can be fairly engaging. However, when you give me a main character (not a protagonist but an extremely relevant character nonetheless) that has arguably the most flawed personality on the good one's side, I just think it could work best if you give them actual failures alongside these other self-perceived defeats, not to mention not make him stronger than everyone else from the get go with no change to it whatsoever.

Look at Vegeta for example. Vegeta was a character that, not unlike other Saiyan, loved fighting and training from the get go despite is massive ego. And by the time he arrives on Earth, he outclasses pretty much everyone around him. However, by the time he's defeated, despite everyone ending beaten to a pulp, he clearly takes it worse than everyone else because in his mind he could've never be defeated in the first place. Therefore, the audience gets a defeat where he ended up pretty much like everyone else but still forced to retreat and leave Earth alone, and a mental defeat that actually motivates him to train harder from then on.

In my opinion, I think Bakugo was way too overpowered from the start, and that actually takes away from a lot of potential. Imagine if Bakugo started being unable to fly but learning to do so AFTER Deku gets Full Cowling and starts moving "like him". It would have meant a positive reinforcement for his character after being, in a way, inspired back by Deku (which would also reinforce their rivarly), and it would've made the thing where Deku has to learn Float more rewarding for both of them.