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Obsession with anything isn't good for you. Attention on your grades is nothing wrong though, would stand you in good stead subsequently.
It's bad until you haven't been shortlisted for placement, only because of your poor grades
CV has no inherent value. Just tailor it for your purposes. No need to overthink this
1. No.

2. Yes, you obviously need to have an all-round good CV.

3. Paradox: An all-round "good CV" cannot be a "good CV" if it doesn't include good grades (higher than above average).
Is obsession over grades healthy in law school? Is being a nerd it or one should have an all round CV