Does this sound like jealousy or harmless competition between friends? What should I do? 10 points!?

You both sound young. In 20's maybe. Your "friend" has let her "transformation" give her a big head and has become self absorbed. Her trying to one up you all the time is a show of insecurity even she things she's all that. It happens alot when young friends change. She has found a new her. You are very comfortable in your own skin and she's aware of that. You do things naturally and she has to work for it. Jealousy really on her part or envy. You just might have grown apart and don't see you being friends 5 years down the road. JMHO. But I've been there myself. Nothing wrong with you. She is "feeling her cheerios" and quite frankly feeling good about herself. But in the end she's insecure and in my opinion not a friend at all.