2) Admit your weakness. Leads to low status, and then opposition from outsiders.
I wonder: it feels like with individuals, honestly and directly admitting your weakness while giving the impression that they're not anything you're trying to hide, can actually increase your status. Having weaknesses yet being comfortable with them signals that you believe you have strength that compensates for those weaknesses, plus having flaws makes you more relatable. Could that also work for groups? I guess the biggest problem would be that with groups, it's harder to present a unified front: even when a single person smoothly and honestly admits the flaw, another gets all defensive.
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That sounds similar to a standard job interview question "What is your greatest weakness?". In that situation, perhaps a standard advice how to answer this question - emphasize how one intends to overcome that weakness and what weaknesses one has conquered in the past - is applicable here as well?
Edit. Although perhaps you meant that the very act of letting outsiders to define what is and what is not a weakness leads to low status.
It is suicidal to admit an actual serious weakness. For multiple reasons. One is that admitting a serious weakness will leave a very bad impressions that is hard to overcome. See the research that people will frequently pay more for a single intact set of objects then two sets of the same objects where one set is damaged.
The other problem is that admitting an actual error is going off the social script. It either paints you as clueless or a "weirdo." This is also a very serious problem.