This is a good take. I like to play chess recreationally; I also know I'm terrible at chess. Never in a thousand years would I put it on my resume.
I have a single line on my resume with interests. I don’t list chess, but list cryptography. Because I’m interested in it.
I just have that line to help with chitchat during the interview. If some interviewer interpreted that to mean I was a professional cryptographer and that I sucked at it, that would be dumb of them.
I also list an interest in kayaking, even though I suck at it.
I list kayaking as a hobby not because I’m competitive and awesome but because I think it’s fun to float down a river. I suppose if a company expected me to be good at my hobby and judged me because of it, I wouldn’t want to work with them because their culture probably has other stupid parts to it too.