This is a very insightful distinction. I disagree with the implication that feelings of entitlement are problematic but think this is mostly offset by the clear description of how to make both aspects accessible to conscious deliberation. I see this most clearly in this:

So you feel entitled? Okay, accept that. Not in the sense of endorsing it, but in the sense of accepting reality as it is. The reality is that you feel entitled. One way to do this while staying outside of the frame is to say something like “so it seems that a bunch of what I’m feeling right now is entitlement”. Either to yourself, or if it makes sense, to share that with the person you’re talking with.