Acharya Prashant explains that when individuals attempt self-observation, they often experience intense criticism, guilt, and shame because they fail to recognize the presence of the 'critic' within them. This internal critic is not the self but a collection of voices from society, the past, and various external influences that have been internalized. Even if the people who originally criticized us are no longer present, their words continue to echo in the mind, making one feel worthless. He emphasizes that one must look closely to identify these intruders and question why they have been allowed to encroach upon one's inner space.