CB can't out compete DHT for the receptor. It can out compete T. It's binding affinity is too weak.
As far as I know it can't outcompete T either. Although the way that CB-03-01 is designed isn't to compete with it's power from raw binding affinity. It's more that CB-03-01 is flooded into the scalp in large doses meaning that enough CB-03-01 surrounds the receptor so there's no "space" for T/DHT to bind.