Between SI and OOC, which is more preferable? And what are the issues you take with either or both of them?

There are many stories where the main character is a Self Insert or way Out Of Character. Sometimes, the line between the two of them is smudged so much that it might as well not exist. Either way, the character becomes someone 'new', or at least quite different from their original interpretation.

So, which one of the two is more preferable? And what are the problems a writer should be somewhat careful about to make the story more enjoyable? Whether it be making the general tone clear in the summary section or toning up or down on certain elements of the story. What is a good way, generally speaking, to create a SI or OOC story.
 
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