Is the saying "Arrogance towards the arrogant is worship" a noble Prophetic Hadith, or a popular saying? And if it is a Prophetic Hadith, who narrated it and what are its sources?

The phrase "Arrogance towards the arrogant is a good deed" is not a prophetic Hadith, but its meaning is sound. It is a designation based on mushakala (reciprocal resemblance), for arrogance here is not blameworthy; rather, it is praiseworthy, serving to alert the arrogant person and stop them from their delusion. This meaning has been supported by some scholars, such as Al-Shafi'i, Al-Zuhri, Abu Hanifa, and Yahya ibn Mu'adh, and Al-Manawi considered it among the good morals.