You ask this question: Why are we so easily fooled into thinking that listening to Bible teaching means that we are living out righteous lives? What is the nature of the self-deception?
Being fooled and deceived is just one of Satan's deadly d's. He seeks to fool us by mimicking God but with additions. We, like Eve, fall for his deadly d because we listen but do not discern. Today we are comfortable to listen but not to do. Jesus told the Pharisees that they listened but did not understand and therefore were not doing what God required. Instead, like Eve, they added to the words of God. We fall for that same lie. We think we are righteous just by listening when Jesus requires we take the next step of doing. James said, don't just be hearers of the word but doers as well.
We are deceived thinking God is pleased by our listening but if there is no application, then it is without merit.