And funnily enough one of the first things you'll notice is that confident people have the same awkward faux pas interactions that would keep you awake at night all the time - maybe even more often, since they aren't so hyper-alert analyzing the conversation. But they just don't care!
And because they don't get all shy and awkward when the awkward thing happens, because they don't make it awkward, the other person doesn't feel awkward either, and maybe at most both parties laugh about it for a moment, the conversation continues and life goes on and that night they sleep the peaceful sleep of the innocent. Or they lie awake worrying about some entirely different set of life problems, because we're all just doing our best and showing the best face we can.
So true, you remember your mistakes way more than anyone else's. Think about it. How many of other people's mistakes do you remember? Not many, if any. You just don't have the time and energy to focus on someone else life. It's hard enough to deal with yours. Be kind to yourself, note mistakes but don't obsess over them.
And because they don't get all shy and awkward when the awkward thing happens, because they don't make it awkward, the other person doesn't feel awkward either, and maybe at most both parties laugh about it for a moment, the conversation continues and life goes on and that night they sleep the peaceful sleep of the innocent. Or they lie awake worrying about some entirely different set of life problems, because we're all just doing our best and showing the best face we can.