Madrid's next two games are away to Liverpool and Atalanta. This could get worse before it gets better. I think top-8 automatic qualification is already good as gone. Getting into the play-off round is a cinch but they have to work to do to finish in the top half and (I presume) get the 2nd leg at home.
I wouldn't be surprised if we're in the final days of Ancelotti there. This season is rapidly spiraling out of control for them, they lose any further ground in the league AND potentially a shockingly early CL exit...signing Mbappé only to see their season effectively over by January would be a monumental failure. There's a litany of other reasons I could talk about to explain how they find themselves where they do right now, and I think a lot of them aren't the fault of Ancelotti, but I don't need to explain to anybody here that, fair or not, managers often take the hit when things go horribly wrong.