I believe that you are writing for someone close to you. Most of what you described indicates of a mood disorder but it could be personality disorder as well, it needs to be ascertained by a clinical psychologist.
Certain depressive symptoms are as you described that the person will feel low-mood during the first half of the day and will get better with the later half of the day. There is a theory that It could due the chemical balance which may be disbalanced after waking up in the morning from a deep sleep.
It appears that the person has developed low self-confidence and also low self-worth. Probably has discomfort intolerance as well. It maybe due to unresolved underlying emotions.
Next Steps
Consult a clinical psychologist to get a detailed evaluation done to work on the problem from the root cause.