Hello Johnny. How about looking at our self-paced, free course Moodle Teaching Basics which explains about all these things - there is also an Admin Basics which explains about setting up competencies. Both these courses are on the site learn.moodle.org and always available. (You can just look for the bits you need if you don't want to do the whole course)
MoodleCloud
What is/How to set up custom learning pathway
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