The Narcissistic Awareness model finds that although narcissists are likely to make a positive first impression, even the narcissist realizes that over time others do not view their performance as positive as their own self-perception.
This provides one reason why Narcissists continually seek out new people to impress. They know from experience that as people get to know them, their impression of the N will not be as positive.
“Narcissists’ failure to pursue long-term relationships and friendships may reflect their awareness that only new acquaintances see them in a positive light.”
Ultimately, “Narcissists understand that others do not see them as positively as they see themselves. Second, they understand that their reputation is more positive in a first impression context than among people who know them well. Third, narcissists describe themselves and their reputation as narcissistic.” (But they don’t necessarily view this as a bad thing.)
Narcissists have a degree of self-awareness. It’s just that they don’t/won’t change.