Madrid must show their improvement by winning the remaining 2 matches in UCL. That will be convincing for them to be able to go to the knockout stage. Although there is also a possibility that they cannot get a direct ticket by being in the top 8 standings, they can still finish everything to be able to qualify for the playoffs.
I still believe they will qualify for the knockout stage, only if there is a worse possibility that they go through the playoffs then hopefully Madrid is not too unlucky to meet a team that is also strong.
And it's true if Madrid want to show that they have improved they need to win the other two games which I know they will do everything possible to still see there self to continue participating because it will be very disappointing for them Not to make it to the next round and Madrid that don't even need to struggle and they are even thinking if eventually they don't make, what will now be next for them and sometimes we fans fail to understand that things will not go the way we want and we should alway learn to accept what ever the clubs are facing at that particular time.
And for a club like Real Madrid that have been doing well so even if they are facing a lot of challenges All they need is to be encouraged even by the coaches because they have even tried because they have been looking for ways to encourage there self the more and don't be be surprised that they will for sure qualify for the next take off this something that is possible.