Apologies for a tiny amount of algebra.
The dot product $x\cdot x$ is $\sum_ix_i^2$. Even in $1$-dimensional space, this is $x^2$, the length squared. In the $2$-dimensional case, we again get a squared length by the Pythagorean theorem. Every time the dimension increments by $1$, this remains true, again by the Pythagorean theorem. For example, if $x$ is a $3$-dimensional vector, it can be thought of as the longest diagonal of a cuboid, and hence the hypotenuse of a right-angled triangle, whose other two sides are an edge and the hypotenuse of another right-angled triangle.
The intuitive reason why the length is squared is because $x\cdot x$ is a product of two $x$s, and has units of length squared. It can no more have the units of length than can the base-times-height area of a rectangle. One more way to make sense of it is that if $x$ doubles, $x\cdot x$ becomes$$(2x)\cdot(2x)=4x\cdot x.$$Doubling a vector quadruples its squared length, not the length itself.
As @Joe noted, $x$'s projection onto $y$ is of length $\frac{x\cdot y}{\Vert y\Vert}$ and is $\frac{x\cdot y}{\Vert y\Vert}\frac{y}{\Vert y\Vert}=\frac{x\cdot y}{y\cdot y}y$, so the projection of $x$ onto itself is $\frac{x\cdot x}{x\cdot x}x=x$. Note $x\cdot x$ itself has become irrelevant here.