Ok, lets break this down. Theres seems to be two issues.
1) Your friend is "too Holy". Is there such a thing as too holy? The answer is no. So, what do you really mean by "too holy"? If you mean that your friend avoids sin like the plague, and is highly aware of sin, even to the point of making you aware of your own sin, ..... well, then, the problem is not with your friend but with you. And you need to be more like your friend!
2) Your friend is argumentative, controlling, hates being reprimanded (rebuked), etc. Well, certainly this is a problem.
I can understand why your friend would irritate you. Not only is your friend is extremely strict and obedient in some areas, but woefully sinful in others. But this is really not much different than any new Christians. In fact I may even say its better, because your friend is showing, by his extremely strict obedience in some areas, that he truly is REPENTANT and wants to serve the Lord COMPLETELY. Can you say the same about yourself? If you think you can, then you need to examine why you would ever consider anyone "too holy".... As for your friends arrogance and other sins, I think its safe to say those will be taken care of by The Holy Spirit in due time. Do not forget that Jesus named the apostles James and John "the sons of thunder" for a reason ha ha. Every Christian has issues that take longer to get resolved than others. The good thing is that your friend is "all in" and doing his best to avoid the sins he can. You should be proud, and happy, and overjoyed that your friend is "too holy" (if there ever was such a thing).