1) Queen actively injures himself meming around
And it was a matter of balance and narrative. Sanji was nerfed because of the changes in his body, making him unable to move properly, so that helped Queen taking him by surprise as well. So Oda compensated it with Queen shooting himself and letting Sanji go, also to show Sanji's new "regeneration" (not actual regeneration).
2) Queen admits he was holding back the whole time to see the raid suit
Having other powers/skills and not using them doesnt mean he was holding back since other skills/abilities doesnt mean you are stronger with them than with other stuff.
3) Queen proceeds to get cheap shotted and taken out while he was simping for a prostitute
The fight is crap but because other things. Like only showing Germa's power 5 seconds before getting knocked out, Haki was "ethereal", hitting woman plot totally unnecessary, Sanji's powerup at this precise moment is forced and the powerup itself is kinda useless (the germa's one), weird/crappy choreography and action scenes, the drawing is kinda meh, a lot of wasted potential (Ice Oni on Queen himself, possible evil Sanji since he got the Germa's body, development of Haki).