Under the traditional understanding of D&D alignment, someone who is largely out for themselves is Evil with a capital E, even if they aren't into kicking puppies and children for fun. At best, Karlach may be neutral in alignment similar to Wyll and Gale. Which might be a step up from Lae'zel and Shadowheart, who basically hate every decision I make, but I'd like to have one good-tilting NPC in the party, you know?
I feel you there, seems like every decision I make I see "Shadowheart/Astorian/Lae'zel disapproves".