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Additional Posts in Designers
Where’s the lie

Nothing to be embarrased about. Nobody reinvents the wheel, and it's good for them to see you have other work besides the freelance work they provide, keeps them on their toesss (if you're a good designer they enjoy working with).
But having them discover that am working with some else with their assets is making me uncomfortable and feel like I have done something wrong. And the way it was discovered isn't nice. ..
Did your manager confront you about this? If they have a problem with it they would voice it. If they haven't brought it up, I think you're fine?
But maybe change the share/view settings of your client's figma file so no one else can see other than yourself and the outside client.
And if you have a main set of components you like to use, be sure to copy and paste then over into your current agency file on a separate page named Components, so that you can apply the components on your designs directly there, and you should be in a better place.
OR have an overarching design system file you publish out so that would be the main source of truth with the ability to apply overrides in new files.