I wanna have a discussion about Self-Inserts within literature,

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I wanna have a discussion about Self-Inserts within literature, and also other medias.

Is self-insertion in of itself a bad thing in story-telling? Many famous and renowned works over the years had writers self-inserting themselves to a degree (for example Stephan King with numerous of his protags as writers) and obviously can lead to the horrid path that is of Mary/Gary Sue.
When I'm thinking of story ideas, I self-insert as a temporary stand-in until I can think of a better character to fulfill that role. This lead me to further think on the concept of using self-insertion in stories. Is it more "acceptable" if it was completely told in a strictly 1st person perspective to also allow the reader to place themselves in the character's shoes. Would it be fine to self-insert if instead of a Mary/Gary Sue, it was the polar opposite where it was acknowledgement of one's own faults and trying to create a story or character development around it, though I feel that can also lead to a Mary/Gary Sue of the opposite spectrum (my life sucks, everything is my fault, etc).

What are your guys opinion on this? Is there any works you believe does it right?