Your question requires better wording. Since the Dunning-Kruger effect has to do cognitive bias in assessing Taking the following information from Wiki: Dunning and Kruger have postulated that the effect is the result of internal illusion in those of low ability, and external misperception in those of high ability: "The miscalibration of the incompetent stems from an error about the self, whereas the miscalibration of the highly competent stems from an error about others."[1] ... One might conclude thatit applies in narcissism and thus might support a diagnosis of naricissism, and it might be a clue to diagnosis of inferior intellectual ability. Are you asking whether this bias could be part of a diagnostic picture? It has nothing to do with the processes that might be involved in spirituality.

Thanks for the reply madam.I agree that wording would have been different Madam. But our inherent problem is that we consider ourselves the troubleahooters ....to what extent we call someone as psychotic is based on call from the community though we consider expertise of that field. If we do not know exactly an internal illusionary experience of so called spiritual process, we end with cognitive error of misinterpreting objects of spiritualism. Maybe you can help me understand it further...

I would regard D-K effect as Theory of Mind (ToM) deficit. It is less of narcissism and more not being able to compare one's low cognitive abilities with others' mind-set.  Certainly within psychiatric domain.There are also limitation in formal operational cognition that might fall outside typical psychiatric practice.