It was basically set up for Italy to waste chances and then blow it yet again, but for the officials.
What a shit generation or so this has been, lost its gritty mentality over the years and now cannot fall back on solidity and quality.
I think part of it is football becoming a lot more global, more footballers in elite leagues for the little nations and less local players playing in top flight for the big5. so Italy are no longer head and shoulders above most teams in Europe and can't afford off days.
f.e. in Serie A in 2003/04 according to fbref 65% of the players were Italian and they played 67% of all the minutes in Serie A. 20 years later in 2023/24 Italians make up 39% of the players and cover 36% of the minutes played. interestingly in Spain the minutes played by locals % is still quite high at 57%, Germany is also better than Italy at 47%, but Ligue 1 and EPL are also heavily based on foreigners like Serie A.
if you combine it with how Serie A has proportionally less money and is no longer a TOP1 or TOP2 league in Europe, the equation becomes quite brutal for the Azzurri - you have a smaller pool to pick from who are playing at a worse level + now there're a lot more smaller countries where half of the starting lineup are from Serie A and they play at the same level as your players like Romania, Albania, etc.