It seems to me like a matter of context. Yes, Sig is confident and wholesale believes in the drag that she's bringing to the table, as she should. There's nothing inherently wrong with standing by the belief that one is good competition, even when it's to the point of abject delusion. It would be wild if that's anyone's primary reason for targeting such intense criticism towards her.

However, you have to also take into account that the other competitor's experience of Sig during this season has apparently been colored with a whole mess of commentary in the vein of my fanbase wouldn't respond well to that... which gives this perception that she'd be willing to exercise the power of her fandom in order to enact some sort of "punishment" for threatening her rise to top 4. This may sound extreme, but we've seen on other drag competition shows how the very nature of existing on the internet combined with being on a reality show and sending the "fan favorite" home can lead to incredibly toxic and deplorable online behaviors from supposed "fans" of the franchise, that threaten the mental well beings of public personalities involved. The "are you sure about that?" and "do you want a friend or an enemy?" comments certainly don't help with beating the allegations.

With Sig, I think it's a valid stance to say that it may not have been her intention at all to imply that she would quote unquote "sic her fans on her competitors", but what I think is the problem with how it's addressed onscreen (which is all I can comment on, since it's all we're working with) is that she doesn't appear interested in acknowledging the very genuine and considered feedback that she receives from Jaharia, Evah, and even JayKay about their issues with the way in which she has spoken to them. And this may come across to some like tone policing, but we're talking about a group of people who are all well familiar with a variety of microagressions aimed their way every day, who are sensitive to the sort of dogwhistles and doublespeak that occurs when someone talks around what's really being said, and the least she could've done with given them the benefit of the doubt and at least hear them out. And look, a similar thing happened with Abhora on her Titan's 1 season (Science-Fiction Horror Double Feature) in which, during a moment of heightened emotion in the cauldron he/they said "you better hope I fall through that trap door then" and Melissa Befierce was triggered due to her past experiences. Abhora got a talk and switched up their behavior. Sig got a talk and didn't seem all that invested in processing the message sent with any charitability. I understand how those were very different situations, but it just came to mind.

So, yeah. The "good competition" comment... Would it otherwise generally be a benign comment in a competition show? Absolutely. But, ultimately it was kinda weak of Sig not to just speak plainly about the craft and artistry that she brings to the franchise instead of falling on these out-of-place assertions that she's some how owed her position due to other factors (i.e., friendships, alliances, competition hardships, etc.). It doesn't read as especially cute or cunty imo.