I do not think there is much evidence that the Ukrainian army is seriously demoralised or unable to make weaponry.
Also source on the bit that Ukraine has suffered far higher losses than Russia? From what I've seen UK + US intelligence agencies are saying both sides have heavy losses but Russia has had higher ones overall (that is, since the start in 2022). Ukraine has probably suffered higher losses in the counteroffensive because modern warfare is defender-sided, but since February 2022? Hmm.