Benito Mussolini and Adolf Hitler meet in 1943 after Mussolini's escape from Italy

The transcript describes the German Fuhrer looking worn and drawn, while his rescued partner, stripped of his uniform and medals, smiles weakly, showing embarrassment over his inglorious flight. The once powerful Axis alliance now faces the grim possibility of ultimate defeat.

What emotions are conveyed through the description of the rescued partner?

What is meant by the 'dread possibility of Ultimate defeat' in the context of the text?