Comparing all of these points against Western Europe, the US is objectively behind. There's your point of comparison. Western Europe has far more expansive worker protections (just look at "right-to-work" states, you can get fired for any reason whatsoever), far more encompassing free healthcare (not just for the poor and older individuals, Medicare and Medicaid is what you're referring to I presume right? There are no other programs for free healthcare in the US), far freer press (according to the World Press Freedom Index, the US is 44th, most Western European states are higher), infrastructure is not crumbling in Western Europe in the same way it is in the US, far lower inequality (this is obvious, check any inequality index), less corruption, on what point exactly of these is the US better than Western Europe?
a) how are these regards cherry-picked?
b) it doesn't no, you are right. However the "third world country with a gucci belt" phrase is intentionally tongue-in-cheek and used to call attention to the fact that the US is behind other first-world countries in many different important ways, which it is. Personally I consider healthcare, worker rights, and infrastructure pretty key issues of extremely high importance, and I'm not sure how it's possible to see it otherwise.
They are important, but ignoring every contrary indicator (per capita GDP, life expectancy, quality of life, etc) in order to exaggerate the extent to which the US lags other nations is the very definition of cherry picking. The US is squarely a first-world country even if it lags various countries other first world countries in certain regards. No doubt this “third world country” business is hyperbole for many people who invoke it (although I think there are many who invoke it who sincerely believe it or just have no moral scruples whatsoever), I’m just saying such rhetoric is unhelpful at best and probably divisive and misleading.