I think in this case it’s more an “I’m not as pathetic as you think I am” contest. Nobody’s going to mistake him for the best duelist in that group, but he’s not willing to concede complete inferiority. It’s certainly a status game, it just doesn’t rise to the level of “establish[ing] superiority”.
Just because Harry’s learned to keep his claws sheathed doesn’t mean he’s not still engaging in dominance contests.
I think in this case it’s more an “I’m not as pathetic as you think I am” contest. Nobody’s going to mistake him for the best duelist in that group, but he’s not willing to concede complete inferiority. It’s certainly a status game, it just doesn’t rise to the level of “establish[ing] superiority”.
Moody set it as a condition for being able to speak as an equal.