Well, the ur-example of 'incompetent evil' would be the Nazis...
Wouldn’t that be the National Fascist Party?
The Nazis were deeply inept at the most basic aspects of governance in ways that the Fascists, at least early on, were not. Mussolini did not literally make the trains run on time (this is Italy we're talking about), but he was able to rule in a way that didn't require a morally insane plunder economy to sustain itself (although, of course, he chose to go in that direction anyway, a choice that says more about him than his innate tendencies or talents do).
Italy struggled to invade Albania, which was rather pathetic to the point where Germany delayed their invasion of the Soviet Union to be closer to winter to help them out, so they kind of hurt Germany there. Sure with hindsight we can say that Germany shouldn't have invaded the Soviet Union then since Stalin wasn't planning anything yet and it'd have been easier to get oil from Arabia. But Italy certainly didn't help the situation.
