What is the ruling on academic or professional competition? And does it fall under the warning mentioned in the Hadith: "Whoever seeks knowledge to dispute thereby with the foolish, or to boast thereby before the scholars, or to turn people's faces towards him, then he is in the Fire"?

The aforementioned hadith (definition) is authentic, and its intent is the sacred knowledge. Academic competition, whether in sacred or worldly knowledge, is commendable if its aim is to gain reward, and permissible if its aim is academic success. As for competition in sacred knowledge for worldly gain and to surpass others, it falls under the hadith because it is not for the sake of Allah.