FTR, if you read the context of that verse, we were never told to 'overlook' the flaws in others. We were told to deal with our own 'flaws' first so that we can see clearly to *help* others with theirs. Again... Nothing in that message told us to ignore sin.
We are to bear with the flaws in others. We are to love them despite their flaws.
If we are called to be like Jesus, then we should probably know what He was like, and He didn't have a habit of ignoring people's sin. He went on sarcastic attack against self righteous people who were comfortable in their sin. He graciously called those who'd been humbled to repent and turn from their sin. But He loved people too much to just play paddy-cake with people so that He could be liked by everyone and get the reputation as a chill guy.
(I know you didn't post that devotional, and you weren't necessarily endorsing everything it said. This was more in response to that part of the devotional; not you.)