Compensatory narcissism is basically using narcissism to compensate for your own weaknesses. What else you also have or don't have [AsPD BPD HPD whatever other PD] is not necessarily linked into it.
Here's my own screwed up perspective on narcissistic defenses:
I used to have big problems with compensatory narcissism. The truth is that I have had poor self discipline/ability to actually act on anything unless under the right sort of pressure, problems with depression and dissociation which would prevent me from functioning at an adequate level, overcompensating for [some forms of] poor self-control with both narcissistic self-image and extreme paranoia that helped me limit the damage from my own actions, a deep seated hatred of everything and everyone that got in the way and I needed to plaster over with fake socialisation combined with dissatisfaction at the mediocre existence society would offer me bearing those things in mind, and would overcompensate for that by trying to "live" my ambitions and perceptions without actually being able to achieve them... Which made me act pretty much exactly like a narcissist. (and yes I reckon that would count as a variety of narcissism.)
The cure was to face those things, and say, OK, this is what i want, [both conflicted ends of it] and this is where I am right now. As far as functionality goes, the attempt is to remove the disparity between those 2 things by finding a way to function not based around self-deluding.
To an extent I still use some of the same defences to try to interact with the world but to a lesser extent. I don't need to delude myself instead of getting on with my life "oh yeah, I'm working on a blah, its going to be great." is replaced with, "
damn, I'm ######6 crazy, but here's where I'd like to be. A blah would get me there, but those mess with my issues. I wonder how i can improve my functionality/adapt my methods/ideas etc to help me get where I want in a way that I will be happier with and that will set off my issues less".
What I lost with dropping a lot of the narcissism was going round in circles thinking big but talking constant shite and getting nowhere, and replacing it with a more realistic perspective of how to get where I want to go - also a realistic realisation that I still have a lot of work to do on myself. lol.
Facing your insecurities is not the same as accepting them as "who you are". Chances are if there are things you hate or dislike about yourself that you have to use narcissistic defenses to escape, those things are not you, they are issues you have that cause you pain/discomfort/dissatisfaction/shame etc.
Facing them helps you actually be who you want to be, by working on the insecurities to change them, and be the person you really feel that you are - by being able to accept that while some things in life (e.g. money) might be able to arrive that way for "lucky" people, nothing about "being" anything lands in your lap and everyone who is anything they want to be has to work for it - and that not being there is not failure, its basically the beginning of a process.
- true for both physical and mental skills, and psychological attributes. But progress requires self-honesty, and honestly coming out the other side, endless circles of self-dishonesty and failure are far more miserable to deal with than accepting you're not who or where you want to be quite yet.
Get rid of that stuff and you won't need to be a narcissist, in my experience if you still want to be an egotistical arsehole there's plenty of chance to do that, just look at me I'm probably still a bit up myself

lol. Just more realistic about life etc.
My experiences are that you can be more realistic about each given moment so you look like you're aiming lower in the short term, but getting on with what you really want to more, and from what I can tell while the crash is painful, you gain a lot of capacity to do better in the long term with whatever things you're trying at.
Not saying it all becomes a bed of roses, it doesn't, but what does change is that whatever other PDs you may or may not have, dropping the narcissism give you a lot more control over where you want to direct your own life.
~I'm sure it wasn't their intent at the time, but genuine thanks to the total @@@@@@@ who did that one to me a few years back.
< (good-humoured friendly both sarcasm and genuine comment, not nastiness.
)What I'm trying to say is that people tend to be wary of dropping it, but in the long run narcissism is actually more painful than the stuff its trying to protect you from.
Just in case the experiences of another nutter are interesting, lol.