First off, the Dodgers were better in every conceivable way than the Yankees. The better team won this World Series.
But, it's frankly stunning yet completely on brand for this Yankee team to lose the way that they did. Fundamentally unsound to the end. Unable to execute the most basic play, unable to field, unable to run the bases correctly, unable to situationally hit. It's even worse when two of the gaffes last night were by their best players and leaders, To a large degree, the Yankees were helped this year by the AL being as bad as I can remember it, and a path to the World Series that went through the AL Central as opposed to having to beat the Astros or Orioles (yes, they weren't good enough to make it to a Yankee matchup, but the path was easier without them there). In this WS, being so fundamentally unsound was not going to work against a team like the Dodgers, and giving a team 6 outs in an inning and giving away Game 1 is a recipe for defeat. The players certainly bear the lion share of blame for this, but the manager bears blame here as well. Attention to detail is not a strong suit for the Boone led Yankees, and this got them last night.
I do not expect Soto to come back next season, and with Steinbrenner indicating earlier this year that the payroll was being reduced, this may end up being the high water mark for this team for a while. This will not be an enjoyable offseason.