I am not sure how to understand the difference (if there is any) between s's O-competence and s's O'-competence, where O' is the group (set?) of properties typifying things with the property o, and o is one of the properties in the set O. Prinz tells us that O'-competence involves "internalization", but does not mention that this process is constitutive of O-competence. Yet it is not clear to me that he would deny that O-competence involves (or directly involves) the same process of "internalization".
However we understand internalization, and whether or not it is necessary for O-competence, we must conclude that O-competence involves an infinite regress.